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Can I receive a tax credit for my new furnace?

April 08, 2020

For a lot of households, there usually seems to be a large list of home improvement projects that they would like to get done or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is an example of a project that could be key to keeping your home comfortable during the colder months in Portland.

Buying a new furnace is a large investment. You’ll definitely see the return-on-investment on your indoor comfort along with your utility costs, but it could be a bit intimidating at first. The good news is that when you pick a new energy-efficient furnace, you might be qualified 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 receive the tax credit, you have to purchase 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, watch for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Three Rivers Heating & Cooling, our team can help you find a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to check the furnace you select has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit is not going to be the only savings you’ll find when you select a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you think of questions regarding your eligibility for a tax credit, or if there are further local savings you could be eligible for by buying a new high-efficiency furnace, give our technicians at Three Rivers Heating & Cooling a call at 503-213-4433. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.