Can I earn a tax credit for my new furnace?

April 08, 2020

For most households, there typically seems to be a lengthy list of home improvement tasks that they would like to get done or new ideas they’d like to give a shot. While some may not be required, furnace replacement is one job that could be vital to keeping your home comfortable through the winter months in Alice.

Selecting a new furnace is a great investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your energy costs, but it could be a bit intimidating at first. The good news is that when you pick a new energy-efficient furnace, you might be eligible 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 must purchase 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 looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Rescue Heating & Air , we’ll help you select a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check 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.

Qualifying for the tax credit won’t be the only savings you’ll receive when you select a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills all year long. And your family will also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by installing a new high-efficiency furnace, give our professionals at Rescue Heating & Air a call at 361-265-4371. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.