Can I Receive a Tax Credit for My New Furnace?

For many households, there always seems to be a lengthy list of home improvement projects that they want to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is one project that might be critical to keeping your home comfortable during the colder months in Erie.

Buying a new furnace is a big investment. You’ll definitely see the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a little intimidating at first. The good news is that when you select 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 prolonged through December 31, 2020. In order to obtain the tax credit, you must 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 browsing for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Patterson & Stirling, we’ll help you determine a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to clarify that 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.

Qualifying for the tax credit won’t be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy costs all year long. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

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