Can I Receive Tax Credits for My New Furnace?

For a lot of homeowners, there usually seems to be a large list of home improvement projects that they would like to get done or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is one task that may be critical to keeping your home comfortable throughout the colder months in Justin.

Purchasing a new furnace is a large investment. You’ll definitely see the return-on-investment on your indoor comfort along with your energy costs, but it could be a tad overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you could be approved 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 obtain the tax credit, you must buy 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Pepper AC & Heat, the experts will help you find a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to check the furnace you select has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll receive when you buy a new high-efficiency furnace. A lot of the most efficient furnaces 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 temp.

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