Can I earn a tax credit for my new furnace?

April 08, 2020

For a lot of households, there usually seems to be a lengthy list of home improvement to-do’s that they need to get done or new ideas they’d like to try. While some may not be necessary, furnace replacement is one project that might be vital to keeping your home comfortable through the colder months in Heflin.

Buying a new furnace is a large investment. You’ll certainly notice the return-on-investment on your indoor comfort along with your utility costs, but it could be a little daunting at first. The good news is that when you pick 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 prolonged through December 31, 2020. In order to get the tax credit, you must purchase 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 researching furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Bain Heating & Air Conditioning, Inc, our team can help you choose a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to check 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.

Qualifying for the tax credit won’t be the only savings you’ll observe when you purchase a new high-efficiency furnace. A lot of the most efficient furnaces 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 keep your house at just the right comfort level.

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying a new high-efficiency furnace, give our technicians at Bain Heating & Air Conditioning, Inc a call at 256-270-1196. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.