Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For many families, there typically seems to be a long list of home improvement tasks that they need to do or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is one task that might be critical to keeping your home comfortable through the colder months in Williamsport.

Buying a new furnace is a great investment. You’ll definitely realize the return-on-investment on your indoor comfort as well as your energy bills, but it may be a tad daunting at first. The good news is that when you select 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 extended through December 31, 2020. In order to get the tax credit, you are required to 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 shopping 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 Lycoming Heating Company, the experts will help you find an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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 indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll receive when you get a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs all year long. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temp.

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 installing a new high-efficiency furnace, give our professionals at Lycoming Heating Company a call at 570-244-2510. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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