Can I Receive a Tax Credit for My New Furnace?

For a lot of households, there usually seems to be a long list of home improvement to-do’s that they need to do or new ideas they’d like to attempt. While several may not be required, furnace replacement is a project that may be vital to keeping your home comfortable throughout the cooler months in Newark.

Getting a new furnace is a sizeable investment. You’ll certainly notice the return-on-investment on your indoor comfort along with your utility costs, but it may be a bit daunting at first. The good news is that when you buy a new energy-efficient furnace, you might be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to obtain the tax credit, you must purchase 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 looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Luikart Heating & Cooling, the experts will help you determine a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to check 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 will not be the only savings you’ll observe when you purchase a new high-efficiency furnace. Many 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 keep your house at just the right comfort level.

If you think of questions concerning your eligibility for a tax credit, or if there are other local savings you may be eligible for by getting a new high-efficiency furnace, give our teams at Luikart Heating & Cooling a call at 740-344-5497. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.