Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most homeowners, there always seems to be a large list of home improvement projects that they need to complete or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is one job that may be critical to keeping your home comfortable throughout the colder months in Zelienople.

Getting a new furnace is a large investment. You’ll absolutely recognize the return-on-investment on your indoor comfort along with your utility costs, but it may be a bit overwhelming at first. The good news is that when you shop for 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 purchase 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 looking for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Knoechel Heating Company, we’ll help you identify a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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 means 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 purchase a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills during the year. And your household will also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions concerning your eligibility for a tax credit, or if there are other local savings you could be eligible for by installing a new high-efficiency furnace, give our professionals at Knoechel Heating Company a call at 724-425-5852. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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