Can I Receive Tax Credits for My New Furnace?

For a lot of homeowners, there typically seems to be a lengthy list of home improvement to-do’s that they would like to do or new ideas they’d like to attempt. While some may not be required, furnace replacement is a job that could be key to keeping your home comfortable through the cooler months in Booneville.

Buying a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your energy costs, but it might be a little daunting at first. The good news is that when you select 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 are required to 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 shopping for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Booneville Heating & Cooling, the experts will help you determine a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to clarify that the furnace you choose 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 is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills all year long. And your family will also have more confidence in your HVAC system to keep your house at just the right temp.

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