Can I Get Tax Credits for My New Furnace?

For many families, there always seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to give a shot. While some may not be necessities, furnace replacement is one task that might be key to keeping your home comfortable during the winter months in Odessa.

Buying a new furnace is a sizeable investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your utility costs, but it may be a little intimidating at first. The good news is that when you pick a new energy-efficient furnace, you might be eligible 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. However, 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 solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Redhawk Heating & Air Conditioning, we’ll help you determine an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm 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.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you buy a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your utility costs during the year. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

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