Can I Earn a Tax Credit for My New Furnace?

For most households, there typically seems to be a large list of home improvement tasks that they need to get done or new ideas they’d like to try. While several may not be required, furnace replacement is an example of a job that could be critical to keeping your home comfortable throughout the winter months in Payson.

Getting a new furnace is a great investment. You’ll definitely recognize the return-on-investment on your indoor comfort along with your energy bills, but it may be a tad intimidating at first. The good news is that when you purchase 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 pushed through December 31, 2020. In order to receive the tax credit, you have to purchase 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 shopping for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At North Mechanical Heating and Cooling, we’ll help you select a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll observe when you buy a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And you’ll also have more confidence in your HVAC system to help your home stay at just the right temp.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you could be eligible for by installing a new high-efficiency furnace, give our professionals at North Mechanical Heating and Cooling a call at 928-263-8570. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.