Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most families, there typically seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to attempt. While some may not be necessities, furnace replacement is an example of a project that may be critical to keeping your home comfortable throughout the winter months in Middletown.

Buying a new furnace is a large investment. You’ll absolutely realize the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a little overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you might 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 get 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 browsing for furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Schagrin Gas Company, our team can help you determine an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm the furnace you pick 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.

This tax credit won’t be the only savings you’ll find when you get a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you have questions about 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 experts at Schagrin Gas Company a call at 302-231-1380. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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