Can I Receive Tax Credits for My New Furnace?

For many homeowners, there always seems to be a long list of home improvement to-do’s that they want to do or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is an example of a task that might be critical to keeping your home comfortable throughout the cooler months in Lodi.

Getting a new furnace is a great investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a little intimidating at first. The good news is that when you select 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 must 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 looking for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Tokay, our team can help you find a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate 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 means the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll observe when you get a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy costs all year long. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you could be eligible for by getting a new high-efficiency furnace, give our technicians at Tokay a call at 209-257-3156. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.