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Can I earn a tax credit for my new furnace?

April 08, 2020

For a lot of households, there typically seems to be a large list of home improvement to-do’s that they would like to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is one task that could be vital to keeping your home comfortable through the colder months in Neptune City.

Purchasing a new furnace is a big investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your utility costs, but it may be a tad overwhelming at first. The good news is that when you pick 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 prolonged through December 31, 2020. In order to obtain the tax credit, you have to select 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Aggressive Mechanical, our team can help you choose a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your utility costs throughout the year. And your household will also have higher confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions about your eligibility for a tax credit, or if there are further local savings you may be eligible for by purchasing a new high-efficiency furnace, give our experts at Aggressive Mechanical a call at 732-806-5536. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.