Can I Get a Tax Credit for My New Furnace?

For a lot of families, there always seems to be a long list of home improvement projects that they need to complete or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is an example of a project that could be key to keeping your home comfortable throughout the cooler months in Odessa.

Selecting a new furnace is a sizeable investment. You’ll certainly realize the return-on-investment on your indoor comfort as well as your energy costs, but it could be a bit intimidating at first. The good news is that when you buy a new energy-efficient furnace, you could 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 obtain the tax credit, you must buy a furnace that has earned the ENERGY STAR label. Keep in mind it can’t 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 sure you’re selecting a high-efficiency furnace.

At Redhawk Heating & Air Conditioning, the experts will help you choose a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to confirm 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.

This tax credit is not going to be the only savings you’ll find when you purchase a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy bills during the year. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions regarding 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 Redhawk Heating & Air Conditioning a call at 432-237-0168. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.