Can I Earn a Tax Credit for My New Furnace?

For a lot of households, there always seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to try. While a handful may not be required, furnace replacement is a job that may be critical to keeping your home comfortable through the cooler months in Zelienople.

Purchasing a new furnace is a great investment. You’ll definitely realize the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a bit overwhelming at first. The good news is that when you purchase 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 prolonged through December 31, 2020. In order to get the tax credit, you have to select a furnace that has earned the ENERGY STAR label. Keep in mind 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 Knoechel Heating, we’ll help you choose an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check 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 receive when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy costs during the year. And your family will also have more confidence in your HVAC system to maintain your indoor space 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 may be eligible for by purchasing a new high-efficiency furnace, give our technicians at Knoechel Heating a call at 724-425-5852. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.