Can I Earn Tax Credits for My New Furnace?

For most families, there usually seems to be a large list of home improvement tasks that they would like to do or new ideas they’d like to try. While some may not be required, furnace replacement is an example of a job that may be critical to keeping your home comfortable during the cooler months in Troy.

Purchasing a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a bit intimidating at first. The good news is that when you buy a new energy-efficient furnace, you could 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 get the tax credit, you have to buy 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 researching furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Edington Heating & Cooling Inc, our team can help you find a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate 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 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 select a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs during the year. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you come across questions concerning 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 technicians at Edington Heating & Cooling Inc a call at 937-558-9478. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.