Can I Earn Tax Credits for My New Furnace?

For a lot of families, there typically seems to be a large list of home improvement to-do’s that they want to complete or new ideas they’d like to try. While some may not be necessities, furnace replacement is a project that may be vital to keeping your home comfortable through the winter months in Newark.

Buying a new furnace is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort as well as your energy bills, but it might be a little overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you could 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 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, watch for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Luikart Heating & Cooling, the experts will help you find a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to clarify that the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit is not going to be the only savings you’ll observe when you select a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And you’ll also have more confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions about 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 experts at Luikart Heating & Cooling a call at 740-344-5497. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.