Can I get a tax credit for my new furnace?

April 08, 2020

For many homeowners, there usually seems to be a large list of home improvement tasks that they need to get done or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is an example of a project that could be key to keeping your home comfortable during the colder months in Hamilton.

Selecting a new furnace is a sizeable investment. You’ll certainly realize the return-on-investment on your indoor comfort as well as your energy bills, but it could be a bit overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you might be eligible 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 must select 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, watch for solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Carefree Heating and Cooling, LLC, our team can help you select an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to confirm the furnace you pick 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 is not going to be the only savings you’ll observe when you purchase a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills all year long. And your household will also have greater confidence in your HVAC system to help your home stay at just the right comfort level.

If you think of questions concerning your eligibility for a tax credit, or if there are additional local savings you might be eligible for by buying a new high-efficiency furnace, give our experts at Carefree Heating and Cooling, LLC a call at 513-268-5164. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.