Can I earn a tax credit for my new furnace?

April 08, 2020

For many households, there always seems to be a long list of home improvement to-do’s that they need to get done or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is one task that could be key to keeping your home comfortable during the cooler months in Westerville.

Purchasing a new furnace is a large investment. You’ll absolutely realize the return-on-investment on your indoor comfort along with your utility costs, but it might be a bit intimidating 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 pushed through December 31, 2020. In order to receive 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 looking for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Uptown Heating & Cooling, we’ll help you find a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to confirm the furnace you choose 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.

Taking advantage of this opportunity will not be the only savings you’ll find when you get a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills 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 have questions about your eligibility for a tax credit, or if there are other local savings you could be eligible for by buying a new high-efficiency furnace, give our professionals at Uptown Heating & Cooling a call at 614-344-6949. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.