Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many families, there typically seems to be a long list of home improvement tasks that they want to do or new ideas they’d like to try. While a handful may not be required, furnace replacement is one task that may be vital to keeping your home comfortable through the winter months in Ronkonkoma.

Getting a new furnace is a great investment. You’ll absolutely see the return-on-investment on your indoor comfort in addition to 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 may be eligible 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 have to select 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 looking for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Cool Power LLC , our team can help you determine a solution that matches your needs and makes sure 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 indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll observe when you get a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy bills during the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you have questions concerning 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 professionals at Cool Power LLC a call at 631-246-4029. 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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