Can I get a tax credit for my new furnace?

April 08, 2020

For many families, there usually seems to be a long list of home improvement to-do’s that they need to do or new ideas they’d like to try. While several may not be required, furnace replacement is an example of a project that could be critical to keeping your home comfortable throughout the colder months in Circleville.

Selecting a new furnace is a sizeable investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your utility costs, but it could be a tad 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 extended through December 31, 2020. In order to receive the tax credit, you must purchase 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 researching furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Stephen Hurst Pack Heating and Cooling, Inc, the experts will help you find an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate 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 will not be the only savings you’ll find when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills all year long. And your family will also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by buying a new high-efficiency furnace, give our experts at Stephen Hurst Pack Heating and Cooling, Inc a call at 740-474-5940. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.