Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most families, there usually seems to be a lengthy list of home improvement tasks that they need to complete or new ideas they’d like to try. While several may not be required, furnace replacement is an example of a job that may be key to keeping your home comfortable during the colder months in Booneville.

Purchasing a new furnace is a great investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your energy costs, but it could be a tad intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you may be eligible 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 obtain the tax credit, you are required 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, look for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Booneville Heating & Cooling LLC, our team can help you identify a solution that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important 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 means the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll find when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills 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 further local savings you may be eligible for by getting a new high-efficiency furnace, give our teams at Booneville Heating & Cooling LLC a call at 662-269-8716. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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