Can I get a tax credit for my new furnace?

April 08, 2020

For many households, there usually seems to be a large list of home improvement tasks that they want to do or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is a project that could be critical to keeping your home comfortable during the winter months in Ronkonkoma.

Buying a new furnace is a sizeable investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a bit overwhelming at first. The good news is that when you pick 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 prolonged through December 31, 2020. In order to obtain the tax credit, you must select a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Cool Power LLC , we’ll help you choose a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to clarify that 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 is not going to be the only savings you’ll receive when you purchase a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right temp.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by getting a new high-efficiency furnace, give our teams at Cool Power LLC a call at 631-246-4029. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.