Can I Receive a Tax Credit for My New Furnace?

For a lot of households, there usually seems to be a large list of home improvement tasks that they would like to complete or new ideas they’d like to try. While some may not be necessities, furnace replacement is an example of a job that may be critical to keeping your home comfortable throughout the cooler months in Booneville.

Purchasing a new furnace is a large investment. You’ll absolutely see the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a tad daunting at first. The good news is that when you purchase a new energy-efficient furnace, you might be qualified 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 get 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 browsing for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Booneville Heating & Cooling, our team can help you find a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to clarify that the furnace you select 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 observe when you purchase a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs all year long. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right temperature.

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