Can I Earn a Tax Credit for My New Furnace?

For many homeowners, there always seems to be a lengthy list of home improvement to-do’s that they would like to do or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is one job that may be vital to keeping your home comfortable during the cooler months in Port Orchard.

Getting a new furnace is a great investment. You’ll certainly notice the return-on-investment on your indoor comfort along with your energy costs, but it could be a little daunting at first. The good news is that when you pick a new energy-efficient furnace, you may 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 must purchase a furnace that has earned the ENERGY STAR label. It cannot 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 sure you’re selecting a high-efficiency furnace.

At Air Masters Heating & Cooling, the experts will help you find a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to clarify that the furnace you select 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 will not be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And you’ll also have more confidence in your HVAC system to help your home stay 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 might be eligible for by buying a new high-efficiency furnace, give our experts at Air Masters Heating & Cooling a call at 360-205-7115. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.