Can I Get a Tax Credit for My New Furnace?

For most households, there typically seems to be a lengthy list of home improvement projects that they would like to complete or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is one project that might be vital to keeping your home comfortable throughout the cooler months in Cambridge.

Selecting a new furnace is a great investment. You’ll absolutely see the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a little intimidating at first. The good news is that when you shop for 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 obtain the tax credit, you must select 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 browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Pliescott HVAC Services LLC, our team can help you identify a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to clarify that the furnace you choose 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 will not be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs all year long. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by installing a new high-efficiency furnace, give our teams at Pliescott HVAC Services LLC a call at 410-228-4822. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.