Can I Receive Tax Credits for My New Furnace?

For many homeowners, there usually seems to be a long list of home improvement projects that they want to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is one job that might be key to keeping your home comfortable during the cooler months in Goshen.

Selecting a new furnace is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your energy costs, but it could be a little overwhelming at first. The good news is that when you select 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 pushed through December 31, 2020. In order to obtain the tax credit, you are required to 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, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Just Right Heating and Cooling, we’ll help you identify a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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 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 receive when you buy a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your utility costs all year long. And your household will also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions concerning your eligibility for a tax credit, or if there are other local savings you could be eligible for by buying a new high-efficiency furnace, give our teams at Just Right Heating and Cooling a call at 513-392-4969. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.