Can I Receive a Tax Credit for My New Furnace?

For most homeowners, there typically seems to be a large list of home improvement tasks that they would like to complete or new ideas they’d like to give a shot. While several may not be required, furnace replacement is a job that may be key to keeping your home comfortable through the cooler months in Phoenix.

Purchasing a new furnace is a big investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your utility costs, but it may be a bit intimidating at first. The good news is that when you select a new energy-efficient furnace, you may be qualified 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 obtain the tax credit, you are required to 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 researching furnace replacements, watch for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Dial One Mears Air Conditioning & Heating Inc, our team can help you determine a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate 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 indicates 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 purchase a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills throughout the year. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by installing a new high-efficiency furnace, give our technicians at Dial One Mears Air Conditioning & Heating Inc a call at 602-789-3315. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.