Can I Receive a Tax Credit for My New Furnace?

For most families, there usually seems to be a long list of home improvement tasks that they want to get done or new ideas they’d like to try. While some may not be required, furnace replacement is an example of a project that might be key to keeping your home comfortable during the colder months in Erie.

Selecting a new furnace is a big investment. You’ll definitely realize the return-on-investment on your indoor comfort along with your energy bills, but it may be a bit overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you might be eligible 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 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, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Patterson & Stirling, we’ll help you select a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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.

This tax credit won’t be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And your household will also have more confidence in your HVAC system to keep your house at just the right comfort level.

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by installing a new high-efficiency furnace, give our professionals at Patterson & Stirling a call at 814-308-0416. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.