Can I Earn a Tax Credit for My New Furnace?

For most households, there always seems to be a long list of home improvement tasks that they want to get done or new ideas they’d like to attempt. While some may not be required, furnace replacement is a job that could be vital to keeping your home comfortable through the cooler months in Rapid City.

Selecting a new furnace is a sizeable investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your energy costs, but it might be a bit intimidating at first. The good news is that when you purchase 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 are required to 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 looking for furnace replacements, look for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Precision Mechanical, the experts will help you find a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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 means 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 purchase a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs throughout the year. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temp.

If you have questions regarding your eligibility for a tax credit, or if there are further local savings you could be eligible for by installing a new high-efficiency furnace, give our technicians at Precision Mechanical a call at 605-206-3766. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.