Can I Get Tax Credits for My New Furnace?

For many households, there usually seems to be a large list of home improvement tasks that they need to get done or new ideas they’d like to try. While several may not be necessary, furnace replacement is a job that could be critical to keeping your home comfortable through the colder months in Mount Hope.

Buying a new furnace is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a tad daunting at first. The good news is that when you select a new energy-efficient furnace, you could be qualified 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 buy 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 solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Appalachian Heating, we’ll help you choose an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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 represents the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy bills during the year. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you have questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by installing a new high-efficiency furnace, give our technicians at Appalachian Heating a call at 304-707-0600. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.