Can I get a tax credit for my new furnace?

April 08, 2020

For a lot of homeowners, there typically seems to be a large list of home improvement to-do’s that they want to complete or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is a task that might be critical to keeping your home comfortable through the cooler months in Odessa.

Getting a new furnace is a sizeable investment. You’ll definitely recognize the return-on-investment on your indoor comfort as well as your utility costs, but it may be a little overwhelming 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 get the tax credit, you must purchase 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 looking for furnace replacements, look for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Redhawk Heating & Air Conditioning, we’ll 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 will want 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 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 receive when you purchase a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills all year long. And you’ll also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by buying a new high-efficiency furnace, give our technicians at Redhawk Heating & Air Conditioning a call at 432-237-0168. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.