Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many homeowners, there typically seems to be a large list of home improvement tasks that they want to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is an example of a project that may be vital to keeping your home comfortable through the colder months in Grove City.

Getting a new furnace is a sizeable investment. You’ll absolutely notice the return-on-investment on your indoor comfort as well as your utility costs, but it could be a little overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you could be eligible 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 obtain the tax credit, you have 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 browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Air Quality Solutions, the experts will help you choose an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check the furnace you choose 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 is not going to be the only savings you’ll receive when you select 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 you’ll also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying a new high-efficiency furnace, give our professionals at Air Quality Solutions a call at 614-871-4144. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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