Can I Get a Tax Credit for My New Furnace?

For a lot of homeowners, there typically seems to be a large list of home improvement to-do’s that they need to do or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is one job that might be vital to keeping your home comfortable during the colder months in Arlington.

Purchasing a new furnace is a large investment. You’ll absolutely recognize the return-on-investment on your indoor comfort along with your energy costs, but it may be a tad overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you might 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 receive the tax credit, you must buy 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 shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Service Max Heating & Air Conditioning, the experts will help you determine a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to confirm the furnace you select 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.

This tax credit is not going to be the only savings you’ll receive when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy costs during the year. And your family will also have greater confidence in your HVAC system to keep your house at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by purchasing a new high-efficiency furnace, give our professionals at Service Max Heating & Air Conditioning a call at 360-255-5857. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.