Can I Earn a Tax Credit for My New Furnace?

For most families, there usually seems to be a lengthy list of home improvement to-do’s that they need to get done or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is a task that might be critical to keeping your home comfortable throughout the colder months in Rapid City.

Selecting a new furnace is a big investment. You’ll certainly feel the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a little intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you could be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to obtain the tax credit, you have to select a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When researching furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Street Heating and Cooling, our team can help you determine an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll observe when you buy a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills all year long. And you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you have questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by buying a new high-efficiency furnace, give our professionals at Street Heating and Cooling a call at 605-206-3915. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.