Can I receive a tax credit for my new furnace?

April 08, 2020

For most families, there usually seems to be a lengthy list of home improvement tasks that they need to get done or new ideas they’d like to give a shot. While several may not be required, furnace replacement is an example of a project that may be vital to keeping your home comfortable through the colder months in Paxinos.

Buying a new furnace is a great investment. You’ll absolutely realize the return-on-investment on your indoor comfort along with your utility costs, but it might be a little daunting at first. The good news is that when you shop for 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 are required to select 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, look for products with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At LTS Plumbing & Heating Inc., the experts will help you determine a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to clarify that the furnace you select 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 find when you select a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy costs throughout the year. And your family will also have more confidence in your HVAC system to keep your house at just the right temperature.

If you think of questions concerning your eligibility for a tax credit, or if there are other local savings you may be eligible for by getting a new high-efficiency furnace, give our experts at LTS Plumbing & Heating Inc. a call at 570-648-0748. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.