Can I Receive a Tax Credit for My New Furnace?

For many families, there typically seems to be a large list of home improvement to-do’s that they need to do or new ideas they’d like to give a shot. While some may not be required, furnace replacement is an example of a project that might be vital to keeping your home comfortable during the colder months in Smyrna.

Buying a new furnace is a sizeable investment. You’ll definitely see the return-on-investment on your indoor comfort as well as your utility costs, but it may be a tad daunting at first. The good news is that when you buy a new energy-efficient furnace, you could 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 select a furnace that has earned the ENERGY STAR label. However, 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 selecting a high-efficiency furnace.

At Fletcher Plumbing, Heating & AC, our team can help you find a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to confirm 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 receive when you select a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And you’ll 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 additional local savings you might be eligible for by purchasing a new high-efficiency furnace, give our experts at Fletcher Plumbing, Heating & AC a call at 302-653-0503. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.