Can I Receive a Tax Credit for My New Furnace?

For a lot of families, there usually seems to be a lengthy list of home improvement tasks that they want to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is a project that may be vital to keeping your home comfortable during the colder months in West Jefferson.

Getting a new furnace is a sizeable investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a tad daunting at first. The good news is that when you pick a new energy-efficient furnace, you might be eligible 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 must 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 solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At West Jefferson Plumbing and Heating, Inc., our team can help you choose a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check the furnace you choose 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.

This tax credit won’t be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills throughout the year. And your household will also have more confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by buying a new high-efficiency furnace, give our experts at West Jefferson Plumbing and Heating, Inc. a call at 614-879-9091. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.