Can I Earn Tax Credits for My New Furnace?

For most families, there typically seems to be a lengthy list of home improvement tasks that they would like to get done or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is an example of a task that may be vital to keeping your home comfortable throughout the cooler months in Cambridge.

Selecting a new furnace is a sizeable investment. You’ll definitely recognize the return-on-investment on your indoor comfort as well as your utility costs, but it could be a little overwhelming at first. The good news is that when you purchase 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 extended through December 31, 2020. In order to receive the tax credit, you are required to buy 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 researching furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Pliescott HVAC Services LLC, our team can help you identify an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to clarify that the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll observe when you buy a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have more confidence in your HVAC system to keep your house 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 buying a new high-efficiency furnace, give our teams at Pliescott HVAC Services LLC a call at 410-228-4822. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.