Can I Get Tax Credits for My New Furnace?

For a lot of households, there typically seems to be a long list of home improvement to-do’s that they need to do or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is an example of a job that might be vital to keeping your home comfortable through the cooler months in Portland.

Purchasing a new furnace is a sizeable investment. You’ll certainly realize the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a tad daunting at first. The good news is that when you buy a new energy-efficient furnace, you might be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended 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. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Three Rivers Heating and Cooling, our team can help you find an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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.

This tax credit will not be the only savings you’ll find when you get a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And your household will also have more confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by getting a new high-efficiency furnace, give our professionals at Three Rivers Heating and Cooling a call at (503) 739-5400. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.