Can I Get Tax Credits for My New Furnace?

For many families, there usually seems to be a long list of home improvement projects that they need to complete or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is a task that may be vital to keeping your home comfortable during the winter months in Wilkes Barre and Scranton.

Getting a new furnace is a great investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a bit daunting at first. The good news is that when you purchase a new energy-efficient furnace, you could be qualified 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 buy 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At GLR Mechanical, we’ll help you choose an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to check the furnace you select 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.

Taking advantage of this opportunity won’t be the only savings you’ll receive when you get a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And you’ll also have higher confidence in your HVAC system to keep your house 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 buying a new high-efficiency furnace, give our professionals at GLR Mechanical a call at 570-309-0403. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.