Can I Receive a Tax Credit for My New Furnace?

For many families, there always seems to be a large list of home improvement projects that they want to do or new ideas they’d like to try. While several may not be necessities, furnace replacement is one task that may be vital to keeping your home comfortable during the winter months in York.

Buying a new furnace is a big investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your utility costs, but it may be a tad daunting 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 prolonged through December 31, 2020. In order to get the tax credit, you have to purchase 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 researching furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Strine's, we’ll help you determine 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 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.

Taking advantage of this opportunity is not going to be the only savings you’ll receive when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy costs during the year. And your family will also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions about 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 a call at 717-383-4479. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.