Can I Earn a Tax Credit for My New Furnace?

For most households, 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 attempt. While a handful may not be necessities, furnace replacement is an example of a project that may be vital to keeping your home comfortable through the cooler months in Odessa.

Getting a new furnace is a large investment. You’ll absolutely see the return-on-investment on your indoor comfort as well as your energy costs, but it could be a little intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you might be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended through December 31, 2020. In order to obtain the tax credit, you must 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 shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Redhawk Heating & Air Conditioning, the experts will 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, it’s important to check the furnace you pick 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 will not be the only savings you’ll observe when you buy a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your utility costs throughout the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

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