Can I Get Tax Credits for My New Furnace?

For most homeowners, there always seems to be a lengthy 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 necessary, furnace replacement is an example of a project that could be critical to keeping your home comfortable through the colder months in Kearney.

Buying a new furnace is a great investment. You’ll certainly realize the return-on-investment on your indoor comfort as well as your energy costs, but it may be a little intimidating at first. The good news is that when you buy a new energy-efficient furnace, you could be qualified 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 purchase 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 looking for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Thurston Heating & Air Conditioning, the experts will help you identify a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 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 observe when you purchase a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions about 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 experts at Thurston Heating & Air Conditioning a call at 308-624-3485. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.