Can I Earn Tax Credits for My New Furnace?

For most families, there usually seems to be a long list of home improvement tasks that they want to complete or new ideas they’d like to attempt. While several may not be required, furnace replacement is one project that might be critical to keeping your home comfortable during the winter months in Philadelphia.

Selecting a new furnace is a great investment. You’ll definitely realize the return-on-investment on your indoor comfort as well as your energy costs, but it could be a bit daunting at first. The good news is that when you shop for 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 prolonged through December 31, 2020. In order to get the tax credit, you are required to purchase a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Retro HVAC Service & Installation, our team can help you select a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to clarify that 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.

Taking advantage of this opportunity won’t be the only savings you’ll observe when you buy a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your utility costs all year long. And you’ll also have more confidence in your HVAC system to help your home stay at just the right temp.

If you have questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency furnace, give our experts at Retro HVAC Service & Installation a call at 267-277-3851. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.