Can I Earn Tax Credits for My New Furnace?

For most homeowners, there always seems to be a lengthy list of home improvement to-do’s that they need to get done or new ideas they’d like to try. While several may not be necessary, furnace replacement is one task that may be vital to keeping your home comfortable through the cooler months in Erie.

Buying a new furnace is a large investment. You’ll definitely recognize the return-on-investment on your indoor comfort as well as your energy costs, but it might be a little daunting at first. The good news is that when you buy 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 prolonged through December 31, 2020. In order to receive the tax credit, you are required to 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 confident you’re picking a high-efficiency furnace.

At Patterson & Stirling, the experts will help you select a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to confirm the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE means the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll observe when you select a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have more confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by buying a new high-efficiency furnace, give our experts at Patterson & Stirling a call at 814-308-0416. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.