Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most homeowners, there typically seems to be a large list of home improvement projects that they need to get done or new ideas they’d like to give a shot. While several may not be required, furnace replacement is an example of a job that might be critical to keeping your home comfortable through the winter months in Perry.

Getting a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort along with your utility costs, but it might be a tad intimidating at first. The good news is that when you pick a new energy-efficient furnace, you may be approved 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 obtain the tax credit, you are required 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, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Gillman Heating and Air, we’ll help you find a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to confirm the furnace you pick 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.

This tax credit is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you have questions about 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 Gillman Heating and Air a call at 478-202-3076. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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