Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For a lot of households, there always seems to be a large list of home improvement to-do’s that they would like to complete or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is one task that could be vital to keeping your home comfortable throughout the cooler months in Huffman.

Getting a new furnace is a sizeable investment. You’ll definitely realize the return-on-investment on your indoor comfort as well as your energy bills, but it might be a bit overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you might be approved 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 must 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, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Air Houston Mechanical LLC, our team can help you find a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate 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 indicates 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 buy a new high-efficiency furnace. Some of the most efficient products 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 maintain your indoor space at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by getting a new high-efficiency furnace, give our experts at Air Houston Mechanical LLC a call at 832-777-1521. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

Back To Blog