Can I Receive Tax Credits for My New Furnace?

For many households, there typically seems to be a large 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 project that may be key to keeping your home comfortable throughout the cooler months in New Castle.

Buying a new furnace is a large investment. You’ll definitely see the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a little overwhelming at first. The good news is that when you purchase 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 extended through December 31, 2020. In order to receive the tax credit, you must select a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Central Heating & Plumbing, our team can help you identify a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to confirm the furnace you pick 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 won’t be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy bills all year long. And your household will also have more confidence in your HVAC system to keep your house at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by buying a new high-efficiency furnace, give our professionals at Central Heating & Plumbing a call at 724-401-1843. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.