Can I earn a tax credit for my new furnace?

April 08, 2020

For most households, there usually seems to be a large list of home improvement projects that they would like to do or new ideas they’d like to try. While several may not be required, furnace replacement is a project that might be vital to keeping your home comfortable during the winter months in Kearney.

Purchasing a new furnace is a sizeable investment. You’ll certainly feel the return-on-investment on your indoor comfort along with your energy bills, but it may be a bit daunting at first. The good news is that when you select 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 extended through December 31, 2020. In order to get 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 researching furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Thurston Heating & Air Conditioning, our team can help you select a product that matches 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 select 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.

This tax credit won’t be the only savings you’ll receive when you get a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And your household will also have more confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by getting a new high-efficiency furnace, give our teams at Thurston Heating & Air Conditioning a call at 308-624-3485. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.