Can I Receive a Tax Credit for My New Furnace?

For a lot of families, there typically seems to be a long list of home improvement tasks that they need to complete or new ideas they’d like to attempt. While some may not be required, furnace replacement is one task that could be vital to keeping your home comfortable throughout the winter months in Troy.

Selecting a new furnace is a large investment. You’ll certainly realize 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 purchase a new energy-efficient furnace, you could be eligible 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 obtain the tax credit, you must select 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, look for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Edington Heating & Cooling Inc, we’ll help you identify a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to clarify that 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.

Taking advantage of this opportunity will not be the only savings you’ll receive when you get a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you may be eligible for by getting a new high-efficiency furnace, give our teams at Edington Heating & Cooling Inc a call at 937-558-9478. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.