Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most homeowners, there always seems to be a large list of home improvement tasks that they want to complete or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is a task that may be critical to keeping your home comfortable during the cooler months in Dayton.

Purchasing a new furnace is a sizeable investment. You’ll absolutely recognize the return-on-investment on your indoor comfort as well as your energy bills, but it may be a bit intimidating at first. The good news is that when you shop for 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 prolonged through December 31, 2020. In order to get the tax credit, you have 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 researching furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Jent Mechanical LLC, our team can help you determine a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to clarify that the furnace you choose 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 will not be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are further local savings you could be eligible for by purchasing a new high-efficiency furnace, give our professionals at Jent Mechanical LLC a call at 937-845-1111. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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