Can I Receive a Tax Credit for My New Furnace?

For many households, there usually seems to be a large list of home improvement projects that they want to complete or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is a task that could be vital to keeping your home comfortable throughout the colder months in Alliance.

Selecting a new furnace is a large investment. You’ll definitely feel the return-on-investment on your indoor comfort as well as your energy costs, but it may be a tad daunting at first. The good news is that when you pick 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 pushed through December 31, 2020. In order to obtain 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 researching furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Jack's Heating, Cooling, Stoves & Fireplaces, we’ll help you find an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to check the furnace you pick 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.

Taking advantage of this opportunity is not going to be the only savings you’ll receive when you get a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs all year long. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions concerning your eligibility for a tax credit, or if there are other local savings you could be eligible for by buying a new high-efficiency furnace, give our experts at Jack's Heating, Cooling, Stoves & Fireplaces a call at 308-321-4703. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.