Can I Receive a Tax Credit for My New Furnace?

For many homeowners, there always seems to be a long list of home improvement projects that they need to do or new ideas they’d like to try. While some may not be necessary, furnace replacement is an example of a task that could be key to keeping your home comfortable during the winter months in Neptune City.

Buying a new furnace is a sizeable investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a tad overwhelming at first. The good news is that when you select a new energy-efficient furnace, you might be qualified 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 obtain the tax credit, you are required to buy 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 looking for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Aggressive Mechanical, we’ll help you select an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to confirm 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 find when you get a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills all year long. And your family will also have more confidence in your HVAC system to help your home stay at just the right temp.

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