Can I Get Tax Credits for My New Furnace?

For many homeowners, there always seems to be a large list of home improvement to-do’s that they want to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is one job that may be critical to keeping your home comfortable throughout the colder months in Eastland.

Buying a new furnace is a large investment. You’ll certainly realize the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a little intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you may be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to get the tax credit, you are required to buy 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 researching furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At J & J Air Conditioning, the experts will help you determine a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to confirm the furnace you choose 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 is not going to be the only savings you’ll observe when you select a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your utility costs 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 think of questions concerning your eligibility for a tax credit, or if there are further local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at J & J Air Conditioning a call at 254-355-3833. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.