Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For a lot of homeowners, there always seems to be a lengthy list of home improvement tasks that they would like to do or new ideas they’d like to give a shot. While some may not be required, furnace replacement is a task that may be critical to keeping your home comfortable through the cooler months in Greensburg.

Getting a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort along with your energy costs, but it may be a little intimidating at first. The good news is that when you pick 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 extended through December 31, 2020. In order to receive the tax credit, you are required to 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 heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Wallpe Heating & Cooling, our team can help you choose a product that meets 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 indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy bills all year long. 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 further local savings you might be eligible for by buying a new high-efficiency furnace, give our technicians at Wallpe Heating & Cooling a call at 812-663-7252. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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