Can I earn a tax credit for my new furnace?

April 08, 2020

For most families, there typically seems to be a large list of home improvement tasks that they would like to complete or new ideas they’d like to try. While several may not be necessities, furnace replacement is one project that might be vital to keeping your home comfortable through the winter months in Beaverton.

Selecting a new furnace is a sizeable investment. You’ll definitely realize the return-on-investment on your indoor comfort as well as your utility costs, but it might be a little overwhelming at first. The good news is that when you select 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 prolonged through December 31, 2020. In order to get the tax credit, you are required to buy 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, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Garoken Energy Co. Inc., the experts will help you identify an option that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check the furnace you pick 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.

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

If you think of questions about 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 Garoken Energy Co. Inc. a call at 503-374-1934. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.