Can I Get Tax Credits for My New Furnace?

For a lot of families, there usually seems to be a long list of home improvement tasks that they want to complete or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is one task that may be key to keeping your home comfortable during the cooler months in Circleville.

Selecting a new furnace is a sizeable investment. You’ll certainly realize the return-on-investment on your indoor comfort as well as your energy costs, but it could be a tad daunting at first. The good news is that when you buy a new energy-efficient furnace, you may be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to get the tax credit, you are required to select 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, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Stephen Hurst Pack Heating and Cooling, our team can help you identify a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate 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 indicates 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 buy a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at Stephen Hurst Pack Heating and Cooling a call at 740-474-5940. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.