Can I receive a tax credit for my new furnace?

April 08, 2020

For many households, there always seems to be a lengthy list of home improvement to-do’s that they want to get done or new ideas they’d like to try. While some may not be required, furnace replacement is a project that might be critical to keeping your home comfortable through the colder months in Perry.

Selecting a new furnace is a large investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your utility costs, but it could be a little intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you may 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 obtain the tax credit, you are required to 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 browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Gillman Heating and Air, the experts will 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, it’s important 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.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you get a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs during the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency furnace, give our professionals at Gillman Heating and Air a call at 478-202-3076. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.