Can I Receive a Tax Credit for My New Furnace?

For many families, there usually seems to be a lengthy list of home improvement projects that they want to get done or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is one job that could be key to keeping your home comfortable during the winter months in Portland.

Purchasing a new furnace is a big investment. You’ll definitely see the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a bit overwhelming at first. The good news is that when you select a new energy-efficient furnace, you may be approved 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 must purchase a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When researching furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Three Rivers Heating & Cooling, the experts will help you select a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important 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 represents the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills during the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you think of 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 experts at Three Rivers Heating & Cooling a call at 503-213-4433. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.