Can I get a tax credit for my new furnace?

April 08, 2020

For a lot of families, there usually seems to be a long list of home improvement projects that they would like to get done or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is an example of a task that may be key to keeping your home comfortable during the colder months in Drexel Hill.

Getting a new furnace is a sizeable investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your utility costs, but it might be a tad intimidating at first. The good news is that when you shop for 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 must buy a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At O'Brien Heating & Air Conditioning, we’ll help you choose a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify 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. Some of the most efficient solutions can save you hundreds of dollars on your utility costs throughout the year. And your family will also have greater confidence in your HVAC system to keep your house at just the right temp.

If you have questions concerning your eligibility for a tax credit, or if there are additional local savings you could be eligible for by installing a new high-efficiency furnace, give our professionals at O'Brien Heating & Air Conditioning a call at 610-257-7035. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.