Can I Receive a Tax Credit for My New Furnace?

For a lot of households, there always seems to be a lengthy list of home improvement tasks that they want to do or new ideas they’d like to give a shot. While some may not be required, furnace replacement is a task that could be vital to keeping your home comfortable throughout the winter months in East Bernard.

Selecting a new furnace is a sizeable investment. You’ll certainly see the return-on-investment on your indoor comfort as well as your utility costs, but it may be a tad intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you might be qualified 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 obtain the tax credit, you must 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 looking for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At E.B. Air, we’ll help you select an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to clarify that the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll receive when you purchase a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have greater confidence in your HVAC system to keep your house at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are other local savings you might be eligible for by getting a new high-efficiency furnace, give our professionals 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.