Can I get a tax credit for my new furnace?

April 08, 2020

For a lot of families, there typically seems to be a long list of home improvement tasks that they need to complete or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is an example of a job that may be key to keeping your home comfortable throughout the winter months in Phoenix.

Buying a new furnace is a great investment. You’ll certainly realize the return-on-investment on your indoor comfort along with your energy bills, but it could be a bit intimidating at first. The good news is that when you buy 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 receive the tax credit, you are required to select 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, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Dial One Mears Air Conditioning & Heating Inc, the experts will help you identify a solution that meets 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 select 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.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you purchase a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are other local savings you may be eligible for by installing a new high-efficiency furnace, give our professionals at Dial One Mears Air Conditioning & Heating Inc a call at 602-832-7808. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.