Can I receive a tax credit for my new furnace?

April 08, 2020

For a lot of homeowners, there usually seems to be a lengthy list of home improvement projects that they want to get done or new ideas they’d like to attempt. While some may not be required, furnace replacement is one task that could be key to keeping your home comfortable through the winter months in Norton.

Buying a new furnace is a great investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a tad overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you could be eligible 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 receive the tax credit, you are required to purchase 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, look for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At HCE Systems Inc, we’ll help you determine an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check 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.

Qualifying for the tax credit is not going to be the only savings you’ll observe when you select a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs during the year. And your household will also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you might be eligible for by buying a new high-efficiency furnace, give our technicians at HCE Systems Inc a call at 276-302-0076. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.