Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most households, there typically seems to be a large list of home improvement tasks that they need to complete or new ideas they’d like to try. While some may not be necessary, furnace replacement is a project that might be vital to keeping your home comfortable during the cooler months in Kearney.

Purchasing a new furnace is a sizeable investment. You’ll absolutely notice the return-on-investment on your indoor comfort along with your utility costs, but it may be a little intimidating 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 pushed through December 31, 2020. In order to receive 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 researching furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Thurston Heating & Air Conditioning, we’ll help you identify a product that matches your needs and ensures 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 indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll find when you select a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your utility costs throughout the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right comfort level.

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

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