Can I Get a Tax Credit for My New Furnace?

For many homeowners, there usually seems to be a long list of home improvement to-do’s that they need to get done or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is a project that might be key to keeping your home comfortable throughout the winter months in Booneville.

Buying a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort as well as your energy costs, but it might be a bit daunting at first. The good news is that when you buy 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 obtain the tax credit, you have to select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Booneville Heating & Cooling, the experts will help you determine a solution that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to check 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.

This tax credit won’t be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills throughout the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you have questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by buying a new high-efficiency furnace, give our professionals at Booneville Heating & Cooling 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.