Can I earn a tax credit for my new furnace?

April 08, 2020

For a lot of homeowners, there typically seems to be a lengthy list of home improvement tasks that they want to get done or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is a job that might be vital to keeping your home comfortable throughout the cooler months in Mount Hope.

Getting a new furnace is a great investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your utility costs, but it might be a tad overwhelming at first. The good news is that when you select a new energy-efficient furnace, you might be qualified 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 get the tax credit, you have to buy 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 looking for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Appalachian Heating, the experts will help you determine an option 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 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 won’t be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills during 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 regarding your eligibility for a tax credit, or if there are further local savings you could be eligible for by getting a new high-efficiency furnace, give our professionals at Appalachian Heating a call at 304-707-0600. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.