Can I Get a Tax Credit for My New Furnace?

For a lot of households, there typically seems to be a lengthy list of home improvement to-do’s that they want to complete or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is one project that might be key to keeping your home comfortable during the colder months in East Bernard.

Getting a new furnace is a sizeable investment. You’ll definitely recognize the return-on-investment on your indoor comfort as well as your energy bills, but it may be a tad intimidating at first. The good news is that when you select a new energy-efficient furnace, you might 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 select 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 heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At E.B. Air, our team can help you determine a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify 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 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 purchase a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your utility costs all year long. And your household will also have higher confidence in your HVAC system to maintain your indoor space 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 getting a new high-efficiency furnace, give our teams at E.B. Air a call at 979-335-4262. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.