Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most households, there usually seems to be a long list of home improvement to-do’s that they need to complete or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is a task that could be vital to keeping your home comfortable throughout the cooler months in Alice.

Selecting a new furnace is a large investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your utility costs, but it may be a bit intimidating at first. The good news is that when you select 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 pushed through December 31, 2020. In order to obtain the tax credit, you are required to 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 browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Rescue Heating & Air , our team can help you determine an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to clarify that 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.

Qualifying for the tax credit will not be the only savings you’ll find when you get a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions regarding your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing 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.

Back To Blog