Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most homeowners, there typically seems to be a large list of home improvement projects that they need to do or new ideas they’d like to try. While some may not be necessities, furnace replacement is one job that might be vital to keeping your home comfortable during the colder months in Lodi.

Selecting a new furnace is a great investment. You’ll absolutely notice the return-on-investment on your indoor comfort as well as your energy costs, but it might be a little daunting 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 extended through December 31, 2020. In order to receive the tax credit, you are required to purchase 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Tokay Heating and Air Conditioning, the experts will help you choose an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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.

Qualifying for the tax credit will not be the only savings you’ll observe when you select a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills all year long. And your household will also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you have questions concerning your eligibility for a tax credit, or if there are additional local savings you might be eligible for by buying a new high-efficiency furnace, give our teams at Tokay Heating and Air Conditioning a call at 209-257-3156. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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