Can I Get Tax Credits for My New Furnace?

For most homeowners, there typically seems to be a long list of home improvement projects that they would like to get done or new ideas they’d like to give a shot. While some may not be necessities, furnace replacement is one job that might be critical to keeping your home comfortable through the cooler months in Alliance.

Buying a new furnace is a big investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your energy costs, but it may be a little intimidating at first. The good news is that when you select a new energy-efficient furnace, you may 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 obtain the tax credit, you have to select a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Jack's Heating, Cooling, Stoves & Fireplaces, the experts will help you find a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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.

This tax credit won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you could be eligible for by buying a new high-efficiency furnace, give our teams at Jack's Heating, Cooling, Stoves & Fireplaces a call at 308-762-1613. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.