Can I Earn a Tax Credit for My New Furnace?

For many households, there typically seems to be a long list of home improvement projects that they would like to do or new ideas they’d like to try. While several may not be necessities, furnace replacement is a project that may be vital to keeping your home comfortable throughout the cooler months in Phoenix.

Getting a new furnace is a big investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a bit intimidating at first. The good news is that when you pick 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 obtain the tax credit, you have to purchase 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 researching furnace replacements, keep an eye out for solutions 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 select an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to confirm the furnace you select 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 will not be the only savings you’ll observe when you select a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space 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 may be eligible for by purchasing a new high-efficiency furnace, give our teams at Dial One Mears Air Conditioning & Heating Inc a call at 602-789-3315. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.