Can I Get a Tax Credit for My New Furnace?

For many households, there usually seems to be a lengthy list of home improvement tasks that they would like to complete or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is an example of a project that might be vital to keeping your home comfortable throughout the winter months in Neptune City.

Selecting a new furnace is a great investment. You’ll certainly notice the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a bit overwhelming at first. The good news is that when you select a new energy-efficient furnace, you could be qualified 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 obtain 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Aggressive Mechanical, we’ll help you determine a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that 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.

Taking advantage of this opportunity is not going to be the only savings you’ll find when you get a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills throughout the year. And your household will also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by getting a new high-efficiency furnace, give our professionals 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.