Can I Earn a Tax Credit for My New Furnace?

For many families, there typically seems to be a long list of home improvement projects that they would like to do or new ideas they’d like to try. While some may not be necessities, furnace replacement is an example of a project that might be critical to keeping your home comfortable throughout the colder months in Circleville.

Buying a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your utility costs, but it could be a bit daunting at first. The good news is that when you pick 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 receive the tax credit, you have 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 researching furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Stephen Hurst Pack Heating and Cooling, our team can help you choose an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to clarify that the furnace you pick 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 will not be the only savings you’ll receive when you get a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility costs throughout the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right comfort level.

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