Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many households, there typically seems to be a large list of home improvement to-do’s that they need to complete or new ideas they’d like to try. While some may not be required, furnace replacement is one job that could be key to keeping your home comfortable through the winter months in Franklin Lakes.

Purchasing a new furnace is a great investment. You’ll absolutely see the return-on-investment on your indoor comfort as well as your energy costs, but it could be a little daunting at first. The good news is that when you purchase a new energy-efficient furnace, you could 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 receive 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 browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Total Comfort, the experts will help you find an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to check the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll observe when you get a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your utility costs throughout the year. And you’ll also have more confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by getting a new high-efficiency furnace, give our experts at Total Comfort a call at 201-268-5663. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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