Can I Receive Tax Credits for My New Furnace?

For many families, there typically seems to be a large list of home improvement tasks that they want to get done or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is an example of a task that might be key to keeping your home comfortable through the colder months in Payson.

Getting a new furnace is a large investment. You’ll definitely realize the return-on-investment on your indoor comfort as well as your energy bills, but it may be a tad intimidating at first. The good news is that when you buy a new energy-efficient furnace, you may be eligible 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 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 browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At North Mechanical Heating and Cooling, our team can help you determine an option that fits your needs and makes sure 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 find when you select a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy bills during the year. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right temperature.

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