Can I Earn a Tax Credit for My New Furnace?

For most families, there usually seems to be a long list of home improvement tasks that they would like to complete or new ideas they’d like to give a shot. While some may not be necessities, furnace replacement is a task that might be vital to keeping your home comfortable through the winter months in Cottonwood & Prescott.

Buying a new furnace is a big investment. You’ll absolutely recognize the return-on-investment on your indoor comfort in addition to your energy bills, 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 qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended through December 31, 2020. In order to receive the tax credit, you are required to 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 heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Connolly Electric & Mechanical, the experts will help you identify a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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 represents 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 receive when you buy a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills during the year. And you’ll also have more confidence in your HVAC system to keep your house at just the right comfort level.

If you come across questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency furnace, give our teams at Connolly Electric & Mechanical a call at 928-251-4327. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.