Can I Get a Tax Credit for My New Furnace?

For most families, there usually seems to be a lengthy list of home improvement projects that they want to get done or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is an example of a task that might be key to keeping your home comfortable through the winter months in Hasbrouck Heights.

Purchasing a new furnace is a big investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your energy bills, but it may be a tad daunting at first. The good news is that when you purchase 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 obtain the tax credit, you are required to select 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 shopping for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At ACE Solutions, our team can help you select a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll find when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And your household will also have more confidence in your HVAC system to help your home stay at just the right temperature.

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 purchasing a new high-efficiency furnace, give our teams at ACE Solutions a call at 201-579-2562. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.