Can I Receive a Tax Credit for My New Furnace?

For many households, there typically seems to be a large list of home improvement tasks that they need to complete or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is a task that might be critical to keeping your home comfortable during the cooler months in Palm Coast.

Purchasing a new furnace is a great investment. You’ll absolutely notice the return-on-investment on your indoor comfort as well as your energy bills, but it could be a bit overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you might 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 obtain the tax credit, you must 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 heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Cooks Air Conditioning and Heating Specialists, our team can help you select an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate 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 indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills during the year. And your household will also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our technicians at Cooks Air Conditioning and Heating Specialists a call at 386-313-8766. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.