Can I receive a tax credit for my new furnace?

April 08, 2020

For most families, there typically seems to be a long list of home improvement projects that they would like to complete or new ideas they’d like to try. While a handful may not be required, furnace replacement is a job that might be vital to keeping your home comfortable through the cooler months in Troy.

Selecting a new furnace is a sizeable investment. You’ll certainly feel the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a tad intimidating at first. The good news is that when you purchase 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 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Edington Heating & Cooling Inc, we’ll help you determine an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates 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 find when you get a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your utility costs all year long. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

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