Can I Receive a Tax Credit for My New Furnace?

For a lot of homeowners, there typically seems to be a long list of home improvement projects that they need to do or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is a job that might be critical to keeping your home comfortable during the winter months in Arlington.

Buying a new furnace is a large investment. You’ll definitely see the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a bit daunting 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 extended through December 31, 2020. In order to obtain the tax credit, you are required to 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 looking for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Service Max Heating & Air Conditioning, our team can help you identify a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need 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 will not be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs during the year. And your family will also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you have questions about 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 technicians at Service Max Heating & Air Conditioning a call at 360-255-5857. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.