Can I Get a Tax Credit for My New Furnace?

For many homeowners, there typically seems to be a lengthy list of home improvement projects that they want to get done or new ideas they’d like to try. While several may not be required, furnace replacement is one task that might be key to keeping your home comfortable during the winter months in Hasbrouck Heights.

Getting a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your utility costs, but it could be a little intimidating at first. The good news is that when you buy a new energy-efficient furnace, you may be qualified 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 must select 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At ACE Solutions, our team can help you choose a product that fits your needs and helps 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 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 observe when you select a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your utility costs during the year. And your household will also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you may be eligible for by purchasing a new high-efficiency furnace, give our teams at ACE Solutions a call at 201-579-2562. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.