Can I receive a tax credit for my new furnace?

April 08, 2020

For many households, there typically seems to be a lengthy list of home improvement to-do’s that they need to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is a job that might be critical to keeping your home comfortable during the winter months in West Jefferson.

Getting a new furnace is a great investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your energy costs, but it may be a little intimidating at first. The good news is that when you purchase 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 pushed through December 31, 2020. In order to get the tax credit, you have to 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 looking for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At West Jefferson Plumbing and Heating, Inc., the experts will help you choose a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to check 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.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you purchase a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your utility costs all year long. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying a new high-efficiency furnace, give our professionals at West Jefferson Plumbing and Heating, Inc. a call at 614-450-1575. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.