Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most families, there usually seems to be a long list of home improvement to-do’s that they need to complete or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is one project that could be vital to keeping your home comfortable through the cooler months in York.

Getting a new furnace is a big investment. You’ll absolutely see the return-on-investment on your indoor comfort as well as your energy costs, but it could be a tad 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 get the tax credit, you are required to buy a furnace that has earned the ENERGY STAR label. However, it can’t 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 Heating & Air Conditioning, the experts will help you determine a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need 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 indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll observe when you purchase a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you think of questions concerning 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 technicians at Strine's Heating & Air Conditioning a call at 717-383-4479. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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