Can I Get Tax Credits for My New Furnace?

For a lot of families, there always seems to be a large list of home improvement to-do’s that they need to complete or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is a task that may be critical to keeping your home comfortable during the colder months in Wilmington.

Buying a new furnace is a large investment. You’ll definitely realize the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a little overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you might be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to get the tax credit, you are required to select 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 researching furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Ambience HVAC, Inc., our team can help you choose a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate 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 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 receive when you purchase a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you may be eligible for by buying a new high-efficiency furnace, give our technicians at Ambience HVAC, Inc. a call at 302-239-HVAC (4822). You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.