Can I Receive a Tax Credit for My New Furnace?

For a lot of homeowners, there usually seems to be a long list of home improvement to-do’s that they need to get done or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is an example of a task that may be vital to keeping your home comfortable during the colder months in Alice.

Buying a new furnace is a sizeable investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your energy bills, but it might be a tad daunting at first. The good news is that when you pick a new energy-efficient furnace, you could 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 have to 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 researching furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re choosing 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 designate high efficiency, it’s important to clarify that the furnace you select 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 observe when you purchase a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by buying a new high-efficiency furnace, give our technicians at Rescue Heating & Air a call at 361-265-4371. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.