Can I Earn a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a lengthy list of home improvement projects that they would like to do or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is an example of a task that might be critical to keeping your home comfortable through the cooler months in Shamokin and Sunbury.

Buying a new furnace is a big investment. You’ll definitely see the return-on-investment on your indoor comfort along with your energy bills, but it might be a tad 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 get the tax credit, you are required 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, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At LTS Plumbing & Heating Inc., we’ll help you choose an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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.

Taking advantage of this opportunity won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs throughout the year. And your family will also have greater confidence in your HVAC system to keep your house at just the right temp.

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