Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many families, there usually seems to be a lengthy list of home improvement to-do’s that they want to do or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is one task that may be key to keeping your home comfortable throughout the colder months in Alliance.

Purchasing a new furnace is a big investment. You’ll definitely see the return-on-investment on your indoor comfort along with your energy costs, but it could be a little overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you could be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended through December 31, 2020. In order to get the tax credit, you have 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 looking for furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Jack's Heating, Cooling, Stoves & Fireplaces, the experts will help you determine an option that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that the furnace you select has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity will not be the only savings you’ll find when you buy 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 you’ll also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you have questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by installing a new high-efficiency furnace, give our professionals at Jack's Heating, Cooling, Stoves & Fireplaces a call at 308-646-3827. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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