Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many homeowners, there typically seems to be a lengthy list of home improvement tasks that they would like to complete or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is a project that may be critical to keeping your home comfortable throughout the cooler months in Erie.

Getting a new furnace is a big investment. You’ll definitely see the return-on-investment on your indoor comfort along with your energy costs, but it may be a little daunting at first. The good news is that when you pick a new energy-efficient furnace, you might 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 obtain the tax credit, you must 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, look for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Patterson & Stirling Inc, we’ll help you select a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm the furnace you choose 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.

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 solutions can save you hundreds of dollars on your utility costs throughout the year. And your family will also have more confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are further local savings you might be eligible for by purchasing a new high-efficiency furnace, give our technicians at Patterson & Stirling Inc a call at 814-308-0416. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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