Can I Receive a Tax Credit for My New Furnace?

For most families, there typically seems to be a lengthy list of home improvement projects that they want to do or new ideas they’d like to attempt. While some may not be necessities, furnace replacement is one job that may be key to keeping your home comfortable through the colder months in Croydon.

Buying a new furnace is a sizeable investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a bit intimidating at first. The good news is that when you select 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 extended 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. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Indoor Comfort Systems HVAC, the experts will help you choose a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll find when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your utility costs all year long. And your family will also have more confidence in your HVAC system to help your home stay 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 might be eligible for by purchasing a new high-efficiency furnace, give our professionals at Indoor Comfort Systems HVAC a call at 215-741-5505. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.