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 would like to do or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is one job that may be critical to keeping your home comfortable through the colder months in Lodi.

Getting a new furnace is a great investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your energy bills, but it may be a tad daunting at first. The good news is that when you purchase a new energy-efficient furnace, you could be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to obtain the tax credit, you must buy 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 researching furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Tokay, the experts will help you find a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check the furnace you choose 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 won’t be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs all year long. And your household will also have higher confidence in your HVAC system to maintain your indoor space at just the right temp.

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