Can I Receive Tax Credits for My New Furnace?

For most households, there usually seems to be a large list of home improvement projects that they want to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is one project that could be critical to keeping your home comfortable through the winter months in Justin.

Buying a new furnace is a great investment. You’ll certainly feel the return-on-investment on your indoor comfort as well as your energy costs, but it could be a bit intimidating at first. The good news is that when you buy a new energy-efficient furnace, you might 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 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 shopping for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Pepper AC & Heat, the experts will help you find a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify 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.

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

If you come across questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by buying a new high-efficiency furnace, give our professionals at Pepper AC & Heat a call at 940-202-1184. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.