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Can I get a tax credit for my new furnace?

April 08, 2020

For many homeowners, there usually seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to give a shot. While some may not be required, furnace replacement is an example of a project that might be key to keeping your home comfortable through the colder months in Magnolia.

Getting a new furnace is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort as well as your energy bills, but it might be a bit overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you could 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 receive the tax credit, you have to 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, look for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At JTech Mechanical, the experts will help you choose a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to confirm the furnace you select 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 will not be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs during the year. And you’ll also have more confidence in your HVAC system to help your home stay at just the right temp.

If you think of questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by installing a new high-efficiency furnace, give our experts at JTech Mechanical a call at 281-231-8768. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.