Can I Get a Tax Credit for My New Furnace?

For a lot of homeowners, there typically seems to be a lengthy list of home improvement to-do’s that they need to do or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is an example of a project that might be key to keeping your home comfortable during the colder months in Eastland.

Purchasing a new furnace is a sizeable investment. You’ll certainly see the return-on-investment on your indoor comfort as well as your energy costs, but it might be a tad intimidating at first. The good news is that when you select a new energy-efficient furnace, you could 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 receive the tax credit, you are required to select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for 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 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 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.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you purchase a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills all year long. And your household will also have higher 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 may 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.