Can I Receive a Tax Credit for My New Furnace?

For a lot of households, there typically seems to be a lengthy list of home improvement projects that they would like to complete or new ideas they’d like to try. While several may not be necessities, furnace replacement is a job that might be key to keeping your home comfortable through the winter months in Beckley.

Purchasing a new furnace is a large investment. You’ll certainly recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a bit daunting at first. The good news is that when you buy 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 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, look for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Appalachian Heating, we’ll help you find a solution 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 will not be the only savings you’ll receive when you buy a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And your household will also have more confidence in your HVAC system to help your home stay at just the right comfort level.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by buying a new high-efficiency furnace, give our professionals 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.