Can I Get a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a large list of home improvement projects that they would like to complete or new ideas they’d like to try. While some may not be necessary, furnace replacement is a job that might be critical to keeping your home comfortable through the winter months in East Bernard.

Selecting a new furnace is a great investment. You’ll definitely realize the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a little overwhelming at first. The good news is that when you buy 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 extended through December 31, 2020. In order to get the tax credit, you must 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 shopping for furnace replacements, watch for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At E.B. Air, our team can help you select an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to confirm 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 is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs all year long. And you’ll also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you think of questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by buying a new high-efficiency furnace, give our experts at E.B. Air a call at 979-335-4262. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.