Can I Receive a Tax Credit for My New Furnace?

For many families, there typically seems to be a long list of home improvement projects that they would like to complete or new ideas they’d like to try. While some may not be necessary, furnace replacement is a task that might be critical to keeping your home comfortable during the cooler months in Wilmington.

Getting a new furnace is a large investment. You’ll absolutely realize the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a little intimidating at first. The good news is that when you select a new energy-efficient furnace, you might 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 get the tax credit, you are required 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Brandywine Heating & Air, we’ll help you select a solution 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.

Qualifying for the tax credit won’t be the only savings you’ll observe when you get a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs during the year. And you’ll also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you have questions concerning your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at Brandywine Heating & Air a call at 302-261-3596. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.