Can I Get a Tax Credit for My New Furnace?

For a lot of families, there typically seems to be a lengthy list of home improvement to-do’s that they want to complete or new ideas they’d like to try. While a handful may not be required, furnace replacement is an example of a project that may be critical to keeping your home comfortable through the colder months in Circleville.

Buying a new furnace is a large investment. You’ll definitely feel the return-on-investment on your indoor comfort as well as your energy costs, but it might be a tad overwhelming at first. The good news is that when you select 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 pushed through December 31, 2020. In order to receive the tax credit, you must select 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, look for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Stephen Hurst Pack Heating and Cooling, the experts will help you select a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm 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 get a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And your household will also have more confidence in your HVAC system to maintain your indoor space at just the right temp.

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