Can I Receive Tax Credits for My New Furnace?

For a lot of homeowners, there typically seems to be a large list of home improvement to-do’s that they need to do or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is one project that could be critical to keeping your home comfortable through the winter months in Shamokin and Sunbury.

Buying a new furnace is a sizeable investment. You’ll definitely recognize the return-on-investment on your indoor comfort along with your utility costs, but it might be a little overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you may be eligible 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 obtain the tax credit, you are required to purchase 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 researching furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At LTS Plumbing & Heating Inc., our team can help you select a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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.

Qualifying for the tax credit will not be the only savings you’ll observe when you purchase a new high-efficiency furnace. Many of the most efficient furnaces 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 maintain your indoor space at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by getting a new high-efficiency furnace, give our experts at LTS Plumbing & Heating Inc. a call at 570-648-0748. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.