Can I receive a tax credit for my new furnace?

April 08, 2020

For most households, there typically seems to be a large list of home improvement tasks that they would like to get done or new ideas they’d like to try. While several may not be necessities, furnace replacement is an example of a project that might be critical to keeping your home comfortable during the colder months in Suffolk/Nassau County.

Purchasing a new furnace is a large investment. You’ll certainly feel the return-on-investment on your indoor comfort as well as your energy bills, but it might be a little overwhelming at first. The good news is that when you pick 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 prolonged through December 31, 2020. In order to obtain the tax credit, you must buy 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 looking for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Airmax Long Island Inc, the experts will help you select a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to confirm 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 observe when you purchase a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy bills throughout the year. And your household will also have greater confidence in your HVAC system to keep your house at just the right temp.

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 buying a new high-efficiency furnace, give our experts at Airmax Long Island Inc a call at 631-737-5566. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.