Can I Receive a Tax Credit for My New Furnace?

For most families, there typically seems to be a large list of home improvement tasks that they want to complete or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is one job that could be key to keeping your home comfortable during the winter months in Neptune City.

Selecting a new furnace is a great investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a bit daunting at first. The good news is that when you shop for a new energy-efficient furnace, you could be approved 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 receive the tax credit, you are required 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, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Aggressive Mechanical, we’ll help you select a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy costs throughout the year. 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 come across questions regarding your eligibility for a tax credit, or if there are additional local savings you may be eligible for by installing a new high-efficiency furnace, give our experts at Aggressive Mechanical a call at 732-806-5536. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.