Can I Earn a Tax Credit for My New Furnace?

For most families, there typically seems to be a long list of home improvement to-do’s that they would like to complete or new ideas they’d like to try. While several may not be necessities, furnace replacement is an example of a project that might be critical to keeping your home comfortable throughout the winter months in Narvon.

Purchasing a new furnace is a big investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your utility costs, but it might be a little overwhelming at first. The good news is that when you buy 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 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 researching furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Ameri-Tec, we’ll help you determine a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to clarify that 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.

Taking advantage of this opportunity won’t be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by buying a new high-efficiency furnace, give our professionals at Ameri-Tec a call at 717-479-4950. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.