Can I Get a Tax Credit for My New Furnace?

For many homeowners, 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 give a shot. While a handful may not be required, furnace replacement is a task that may be critical to keeping your home comfortable through the cooler months in Lancaster.

Purchasing a new furnace is a sizeable investment. You’ll absolutely see the return-on-investment on your indoor comfort along with your energy bills, but it may be a little overwhelming at first. The good news is that when you pick 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 are required to 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, look for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Fairfield Heating & Cooling, our team can help you find a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to clarify that 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.

Taking advantage of this opportunity is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your utility costs throughout the year. And your family will also have more confidence in your HVAC system to keep your house at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by buying a new high-efficiency furnace, give our technicians at Fairfield Heating & Cooling a call at 740-331-4331. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.