Can I Earn a Tax Credit for My New Furnace?

For many households, there typically seems to be a long list of home improvement to-do’s that they would like to complete or new ideas they’d like to give a shot. While some may not be necessities, furnace replacement is an example of a task that might be critical to keeping your home comfortable through the winter months in West Valley City.

Selecting a new furnace is a large investment. You’ll absolutely see the return-on-investment on your indoor comfort as well as your utility costs, but it could be a little daunting at first. The good news is that when you pick a new energy-efficient furnace, you might be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to get 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 browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Select Comfort Systems, our team can help you identify an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to confirm the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll receive when you select a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs during the year. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by purchasing a new high-efficiency furnace, give our technicians at Select Comfort Systems a call at 801-305-4777. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.