Can I Earn a Tax Credit for My New Furnace?

For most homeowners, there always seems to be a long list of home improvement tasks that they need to get done or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is a job that may be key to keeping your home comfortable during the cooler months in Neptune City.

Getting a new furnace is a large 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 daunting at first. The good news is that when you buy a new energy-efficient furnace, you might be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to get the tax credit, you must buy 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 shopping for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Aggressive Mechanical, we’ll help you choose a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check the furnace you select 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 find when you buy a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And your family will also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our professionals at Aggressive Mechanical a call at 732-806-5536. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.