Can I Earn a Tax Credit for My New Furnace?

For many households, there usually seems to be a lengthy list of home improvement tasks that they want to do or new ideas they’d like to try. While some may not be necessities, furnace replacement is an example of a project that could be key to keeping your home comfortable throughout the winter months in York.

Getting a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a little daunting at first. The good news is that when you pick a new energy-efficient furnace, you might be qualified 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 obtain 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 shopping for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Strine's, we’ll help you choose a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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 find when you select a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right comfort level.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you might be eligible for by getting a new high-efficiency furnace, give our technicians at Strine's a call at 717-383-4479. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.