Can I receive a tax credit for my new furnace?

April 08, 2020

For a lot of families, there usually seems to be a long list of home improvement tasks that they need to get done or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is an example of a project that may be critical to keeping your home comfortable through the colder months in East Bernard.

Selecting a new furnace is a big investment. You’ll absolutely see the return-on-investment on your indoor comfort along with your energy costs, but it could 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 are required to purchase 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 browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At E.B. Air, LLC, the experts will help you select a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to check the furnace you choose 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 is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs during the year. And your family will also have higher confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are additional local savings you could be eligible for by getting a new high-efficiency furnace, give our professionals at E.B. Air, LLC a call at 979-335-4262. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.