Can I Earn a Tax Credit for My New Furnace?

For most homeowners, there typically seems to be a long list of home improvement projects that they need to get done or new ideas they’d like to try. While some may not be necessary, furnace replacement is one job that could be critical to keeping your home comfortable during the cooler months in Cape Coral.

Purchasing a new furnace is a sizeable investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a little intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you could be eligible 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 must select 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, look for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Comfort Zone, LLC, our team can help you choose an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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.

This tax credit will not be the only savings you’ll find when you select a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your utility costs during the year. And your household will also have more confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions about 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 Comfort Zone, LLC a call at 239-214-0411. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.