Can I Get a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a large list of home improvement to-do’s that they would like to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is a task that may be critical to keeping your home comfortable during the colder months in Laurel.

Selecting a new furnace is a great investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your energy costs, but it may be a bit intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you may be qualified 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 receive the tax credit, you must select a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At H&C Heating and Cooling, we’ll help you find a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 means the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy bills during the year. And your family will also have greater confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you could be eligible for by getting a new high-efficiency furnace, give our professionals 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.