Can I receive a tax credit for my new furnace?

April 08, 2020

For many families, there always seems to be a lengthy list of home improvement projects that they want to get done or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is an example of a project that could be key to keeping your home comfortable during the colder months in Montoursville.

Selecting a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a little intimidating at first. The good news is that when you select 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 obtain the tax credit, you must buy 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 researching furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Airmen HVAC Service, we’ll help you choose a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to check the furnace you choose 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.

Qualifying for the tax credit is not going to be the only savings you’ll find when you select a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy costs throughout the year. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by installing a new high-efficiency furnace, give our technicians at Airmen HVAC Service a call at 570-322-3131. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.