Can I Receive a Tax Credit for My New Furnace?

For many families, there always seems to be a long list of home improvement tasks that they would like to do or new ideas they’d like to try. While a handful may not be required, furnace replacement is a task that might be key to keeping your home comfortable throughout the winter months in Cambridge.

Buying a new furnace is a sizeable investment. You’ll absolutely recognize the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a bit overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you may be approved 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 obtain the tax credit, you must 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, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Pliescott HVAC Services LLC, our team can help you choose a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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.

This tax credit won’t be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills all year long. And you’ll 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 might be eligible for by getting a new high-efficiency furnace, give our experts at Pliescott HVAC Services LLC a call at 410-228-4822. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.