Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For many households, there always seems to be a large list of home improvement projects that they need to get done or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is one task that could be key to keeping your home comfortable through the colder months in Drexel Hill.

Selecting a new furnace is a sizeable investment. You’ll absolutely see the return-on-investment on your indoor comfort along with your energy costs, but it could be a tad intimidating at first. The good news is that when you select 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 have to purchase 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At O'Brien Heating & Air Conditioning, we’ll help you determine a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check the furnace you pick 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.

Taking advantage of this opportunity is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills during the year. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right comfort level.

If you think of questions regarding your eligibility for a tax credit, or if there are further local savings you might 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 can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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