Can I Get Tax Credits for My New Furnace?

For many households, there usually seems to be a long list of home improvement projects that they would like to complete or new ideas they’d like to try. While some may not be necessary, furnace replacement is one project that might be key to keeping your home comfortable through the cooler months in Norton.

Getting a new furnace is a sizeable investment. You’ll definitely see the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a little overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you may 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 receive the tax credit, you have to purchase a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At HCE Systems, the experts will help you determine a solution 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 means 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 select a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs throughout the year. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions regarding 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 technicians at HCE Systems a call at 276-302-0076. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.