Can I Receive a Tax Credit for My New Furnace?

For most families, there usually seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to try. While several may not be necessities, furnace replacement is one project that could be vital to keeping your home comfortable through the winter months in Northridge.

Selecting a new furnace is a big investment. You’ll absolutely recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a tad intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you could be eligible 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 get 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 browsing for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Enertek Air Conditioning & Heating, the experts will help you identify a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to check the furnace you choose 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 receive when you select a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills all year long. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you have questions concerning your eligibility for a tax credit, or if there are additional local savings you could be eligible for by getting a new high-efficiency furnace, give our technicians at Enertek Air Conditioning & Heating a call at (818) 727-9993. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.