Can I Receive a Tax Credit for My New Furnace?

For most households, there typically seems to be a long list of home improvement tasks that they need to get done or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is a job that could be vital to keeping your home comfortable through the winter months in Zelienople.

Selecting a new furnace is a large investment. You’ll certainly feel the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a tad overwhelming at first. The good news is that when you buy 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 extended through December 31, 2020. In order to receive the tax credit, you have to purchase 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 looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Knoechel Heating, our team can help you select a solution that fits your needs and helps 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 indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll receive when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills throughout the year. And your household will also have greater 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 further local savings you could be eligible for by installing a new high-efficiency furnace, give our technicians at Knoechel Heating a call at 724-425-5852. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.