Can I Earn Tax Credits for My New Furnace?

For a lot of households, there usually seems to be a lengthy list of home improvement projects that they would like to complete or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is an example of a job that could be vital to keeping your home comfortable throughout the colder months in Frederick.

Buying a new furnace is a great investment. You’ll definitely see the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a little intimidating 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 prolonged through December 31, 2020. In order to receive the tax credit, you must 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 browsing for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At May's Heating & Air, the experts will help you select an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm 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.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And your household will also have more confidence in your HVAC system to keep your house at just the right comfort level.

If you come across questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by installing a new high-efficiency furnace, give our experts at May's Heating & Air a call at 301-690-0397. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.