Family enjoying the comfort of home

Can I receive 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 project that may be vital to keeping your home comfortable through the cooler months in Ronkonkoma.

Getting a new furnace is a great investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a little intimidating 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 extended 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 shopping for furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Cool Power LLC , we’ll help you determine an option that matches 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 indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll observe when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs during the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temp.

If you think of 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 company if you have questions about other eligible home products.

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