Now is the time to replace your furnace if it has been on your to-do list for a while.
Mainly, for two reasons …
Reason #1: The U.S. Department of Energy proposed a bill that passed in late 2011. This bill requires residents and business owners in northern states – that includes Utah – to install furnaces with a 90% Annual Fuel Utilization Efficiency (AFUE) when they choose to upgrade. The proposed effective date in 2011 was for May 1, 2013. However, on the first day of May this year, the effective date was pushed back. And as of December 4, 2014, there is still no new proposed effective date. This gives you – residents and business owners in Utah – an undisclosed amount of extra time to upgrade your furnace before the energy conservation rules become official.
You may be thinking, “So what? If the government isn’t forcing me to upgrade my furnace with the new rules, why does it matter when the rules become effective? Why does it matter if I upgrade now or later?”
This is a valid question many people have. And the question deserves a two-part answer. For those who don’t care about saving money on a qualified furnace, it doesn’t matter when the rules become effective. On the other hand, for those who want to save up to $500 on a 90%+ AFUE furnace, it does matter.
Which brings us to reason #2 why now is the best time to upgrade your furnace.
Reason #2: Many HVAC professionals think that when the new efficiency rules become effective, the $500 tax credit will terminate, if it doesn’t as scheduled on December 31, 2013.
That’s right – in about 3 weeks, the $500 tax credit that thousands of homeowners and businesses have saved money with in the past two years will terminate. The only reason homes and businesses aren’t upgrading now is because owners think the government will prolong the tax credit, much like it prolonged the effective date of the new energy efficiency laws. But if the efficiency laws and tax credits are linked together like many think, this means that the laws will become effective when the tax credits end on December 31, 2013.
The Bottom Line …
The date that you should be concerned about is December 31, 2013. As of now, that Tuesday is the last day you have to be eligible for up to $500 in tax credits. This doesn’t mean you must buy your new furnace by this date. It means you must buy it AND have it installed by this date.
To stay on the safe side, contact your HVAC and heating professionals today to find an energy efficient heating solution that meets your needs and budget (and allows you to save up to $500).
Note: If you’re looking to save more than $500 in tax rebates, consider installing a qualifying Lennox home comfort system to save up to $2,550 in manufacturer rebates, utility rebates and tax credits. In addition to saving money upfront, you’ll also enjoy lower energy costs in the future. Some Lennox models that qualify include the Lennox SLP98, EL195, and York YP9C and TM9V.