Can I Earn Tax Credits for My New Furnace?

For most families, there typically seems to be a large list of home improvement projects that they need to do or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is an example of a project that might be vital to keeping your home comfortable throughout the winter months in Norton.

Purchasing a new furnace is a big investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your energy bills, but it might be a bit daunting at first. The good news is that when you select a new energy-efficient furnace, you might be approved 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 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, watch for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At HCE Systems, the experts will help you select a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to confirm the furnace you pick 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.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And you’ll also have higher confidence in your HVAC system to keep your house at just the right comfort level.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by getting a new high-efficiency furnace, give our teams at HCE Systems a call at 276-302-0076. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.