Can I Receive a Tax Credit for My New Furnace?

For many homeowners, there always seems to be a large list of home improvement projects that they need to complete or new ideas they’d like to give a shot. While some may not be required, furnace replacement is an example of a task that could be critical to keeping your home comfortable during the winter months in Mount Hope.

Selecting a new furnace is a great investment. You’ll absolutely see the return-on-investment on your indoor comfort along with your energy costs, but it may be a little overwhelming at first. The good news is that when you buy 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 prolonged through December 31, 2020. In order to get the tax credit, you are required to purchase 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 browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Appalachian Heating, we’ll help you find a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to confirm 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.

Taking advantage of this opportunity won’t be the only savings you’ll receive when you select a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right comfort level.

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