Can I get a tax credit for my new furnace?

April 08, 2020

For most homeowners, there always seems to be a large list of home improvement to-do’s that they would like to complete or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is a job that might be key to keeping your home comfortable during the cooler months in Kutztown.

Buying a new furnace is a big investment. You’ll certainly realize the return-on-investment on your indoor comfort as well as your energy costs, but it could be a bit daunting at first. The good news is that when you shop for a new energy-efficient furnace, you may be approved 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 purchase 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 shopping 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 Moyer Total Indoor Comfort, we’ll help you identify a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 means 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. Many of the most efficient models can save you hundreds of dollars on your energy bills all year long. And your household will also have higher confidence in your HVAC system to keep your house at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by installing a new high-efficiency furnace, give our professionals at Moyer Total Indoor Comfort a call at 484-646-3363. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.