Can I get a tax credit for my new furnace?

April 08, 2020

For many households, there always seems to be a lengthy list of home improvement tasks that they would like to complete or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is one job that could be critical to keeping your home comfortable during the winter months in York.

Buying a new furnace is a large investment. You’ll absolutely recognize the return-on-investment on your indoor comfort along with your energy costs, but it may be a tad daunting at first. The good news is that when you purchase 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 obtain the tax credit, you must buy 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 products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Strine's Heating & Air Conditioning, our team can help you identify a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to confirm 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.

This tax credit will not be the only savings you’ll observe when you select a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by getting a new high-efficiency furnace, give our experts at Strine's Heating & Air Conditioning a call at 717-383-4479. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.