Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most households, there always seems to be a long list of home improvement to-do’s that they would like to get done or new ideas they’d like to try. While some may not be necessary, furnace replacement is one project that may be vital to keeping your home comfortable through the winter months in McMurray.

Buying a new furnace is a sizeable investment. You’ll definitely realize the return-on-investment on your indoor comfort as well as your energy costs, but it might be a tad daunting at first. The good news is that when you purchase a new energy-efficient furnace, you might be eligible 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 get the tax credit, you have 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Kowalski Heating, Cooling & Plumbing, the experts will help you find a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to confirm the furnace you pick 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 observe when you select a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills all year long. And your household will also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you have questions regarding 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 Kowalski Heating, Cooling & Plumbing a call at 724-370-0141. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

Back To Blog