Can I Receive Tax Credits for My New Furnace?

For a lot of households, there usually seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is one task that could be key to keeping your home comfortable throughout the colder months in Mechanicsburg.

Buying a new furnace is a large investment. You’ll definitely realize the return-on-investment on your indoor comfort along with your utility costs, but it might be a bit overwhelming at first. The good news is that when you shop for 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 receive the tax credit, you are required 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 looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At H & H Service Company, we’ll help you determine an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to check 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 find when you select a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your utility 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 think of questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by getting a new high-efficiency furnace, give our technicians at H & H Service Company a call at 717-220-4502. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.