Can I Receive a Tax Credit for My New Furnace?

For a lot of homeowners, there typically seems to be a large list of home improvement to-do’s that they need to complete or new ideas they’d like to try. While some may not be required, furnace replacement is one job that might be key to keeping your home comfortable through the colder months in Kutztown and Breinigsville.

Selecting a new furnace is a large investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your energy costs, but it could be a little daunting at first. The good news is that when you pick a new energy-efficient furnace, you may be qualified 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. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Moyer Total Indoor Comfort, the experts will help you find a solution that fits 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you think of questions concerning your eligibility for a tax credit, or if there are other local savings you could be eligible for by getting a new high-efficiency furnace, give our technicians at Moyer Total Indoor Comfort a call at 484-646-3363. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.