Can I Earn a Tax Credit for My New Furnace?

For a lot of households, there typically seems to be a lengthy list of home improvement to-do’s that they want to do or new ideas they’d like to try. While some may not be necessary, furnace replacement is one task that might be vital to keeping your home comfortable during the colder months in Zelienople.

Purchasing a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a tad daunting at first. The good news is that when you shop for a new energy-efficient furnace, you could be approved 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 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 researching 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 select a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to confirm the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your utility costs all year long. And you’ll also have more confidence in your HVAC system to help your home stay at just the right comfort level.

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 purchasing a new high-efficiency furnace, give our teams at Knoechel Heating a call at 724-425-5852. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.