Can I earn a tax credit for my new furnace?

April 08, 2020

For many homeowners, there always seems to be a large list of home improvement projects that they would like to complete or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is a job that might be critical to keeping your home comfortable during the winter months in Huffman.

Purchasing a new furnace is a big investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your utility costs, but it might be a little overwhelming at first. The good news is that when you select a new energy-efficient furnace, you may be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to receive the tax credit, you have to buy 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, look for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Air Houston Mechanical LLC, the experts will help you find an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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 indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll find when you select a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs throughout the year. And your family will also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions regarding 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 professionals at Air Houston Mechanical LLC a call at 832-224-3887. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.