Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For many families, there typically seems to be a long list of home improvement projects that they need to complete or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is one project that could be vital to keeping your home comfortable during the cooler months in Phoenix.

Buying a new furnace is a great investment. You’ll certainly see the return-on-investment on your indoor comfort along with your utility costs, but it may be a bit overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you could be approved 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 purchase 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 shopping for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Dial One Mears Air Conditioning & Heating Inc, we’ll help you identify a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check 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.

This tax credit won’t be the only savings you’ll receive when you select a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs during the year. 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 regarding your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying 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 company if you have questions about other eligible home products.

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