Can I Earn a Tax Credit for My New Furnace?

For a lot of families, there usually seems to be a large list of home improvement tasks that they would like to complete or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is an example of a project that might be vital to keeping your home comfortable through the cooler months in York.

Selecting a new furnace is a great investment. You’ll definitely see 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 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 pushed through December 31, 2020. In order to get the tax credit, you must 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 browsing for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Strine's, our team can help you select a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 represents the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll find when you select a new high-efficiency furnace. Some 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 help your home stay at just the right temperature.

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 getting a new high-efficiency furnace, give our professionals at Strine's 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.