Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many families, there typically seems to be a large list of home improvement tasks that they would like to complete or new ideas they’d like to try. While several may not be necessities, furnace replacement is a task that might be vital to keeping your home comfortable through the winter months in Hamilton.

Selecting a new furnace is a large investment. You’ll absolutely recognize the return-on-investment on your indoor comfort along with your energy costs, but it could be a little intimidating 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 pushed through December 31, 2020. In order to get the tax credit, you must buy 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 researching furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Carefree Heating and Cooling, LLC, we’ll help you identify an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by getting a new high-efficiency furnace, give our teams at Carefree Heating and Cooling, LLC a call at 513-268-5164. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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