Can I Earn a Tax Credit for My New Furnace?

For most families, there typically seems to be a long list of home improvement tasks that they want to get done or new ideas they’d like to try. While several may not be necessities, furnace replacement is an example of a task that could be critical to keeping your home comfortable throughout the winter months in Cottonwood & Prescott.

Getting a new furnace is a sizeable investment. You’ll certainly notice the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a little daunting at first. The good news is that when you buy 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 prolonged through December 31, 2020. In order to receive the tax credit, you must buy a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Connolly Electric & Mechanical, the experts will help you select an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 represents 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. Some of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And your family will also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you think of questions concerning your eligibility for a tax credit, or if there are further local savings you could be eligible for by installing a new high-efficiency furnace, give our technicians at Connolly Electric & Mechanical a call at 928-251-4327. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.