Can I Receive Tax Credits for My New Furnace?

For a lot of households, there typically seems to be a long list of home improvement to-do’s that they would like to get done or new ideas they’d like to try. While several may not be necessities, furnace replacement is one task that could be key to keeping your home comfortable throughout the colder months in Laurel.

Purchasing a new furnace is a large investment. You’ll definitely realize the return-on-investment on your indoor comfort along with your energy bills, but it might be a little daunting at first. The good news is that when you select a new energy-efficient furnace, you could 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 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 looking for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At H&C Heating and Cooling, the experts will help you choose an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE means the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll observe when you buy a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right temp.

If you have questions about 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 teams at H&C Heating and Cooling a call at 301-960-3247. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.