Can I Earn a Tax Credit for My New Furnace?

For many families, there always seems to be a lengthy list of home improvement to-do’s that they need to get done or new ideas they’d like to attempt. While some may not be necessities, furnace replacement is a job that could be key to keeping your home comfortable throughout the winter months in Laurel.

Purchasing a new furnace is a great investment. You’ll certainly feel the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a little intimidating at first. The good news is that when you purchase 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 have 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 selecting a high-efficiency furnace.

At H&C Heating and Cooling, our team can help you identify a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to clarify that 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 will not be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions about 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 experts at H&C Heating and Cooling a call at 301-960-3247. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.