Can I receive a tax credit for my new furnace?

April 08, 2020

For most homeowners, there typically seems to be a large list of home improvement tasks that they need to get done or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is an example of a task that might be critical to keeping your home comfortable during the colder months in Booneville.

Selecting a new furnace is a sizeable investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a little overwhelming at first. The good news is that when you pick 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 receive the tax credit, you are required to 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, watch for solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Booneville Heating & Cooling LLC, our team can help you determine an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to clarify that 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 is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs during the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temp.

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by purchasing a new high-efficiency furnace, give our technicians at Booneville Heating & Cooling LLC a call at 662-269-8716. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.