Can I get a tax credit for my new furnace?

April 08, 2020

For a lot of families, there typically seems to be a long list of home improvement projects that they want to complete or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is one project that could be vital to keeping your home comfortable throughout the winter months in Williamsport.

Purchasing a new furnace is a sizeable investment. You’ll absolutely notice the return-on-investment on your indoor comfort as well as your energy costs, but it could be a bit 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 pushed through December 31, 2020. In order to obtain 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, look for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At George Home Services, our team can help you select a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to check the furnace you pick 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.

Taking advantage of this opportunity is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy costs throughout the year. And your household will also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you think of questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by purchasing a new high-efficiency furnace, give our technicians at George Home Services a call at 570-244-2510. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.