Can I receive a tax credit for my new furnace?

April 08, 2020

For a lot of homeowners, there always seems to be a long list of home improvement projects that they need to do or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is a project that might be critical to keeping your home comfortable during the winter months in Muldrow.

Selecting a new furnace is a great investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a tad intimidating at first. The good news is that when you buy a new energy-efficient furnace, you may be approved 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 have to select 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 browsing 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 Air Service Co., our team can help you find a solution that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to clarify that the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you purchase a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills throughout the year. And your household will also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you could be eligible for by buying a new high-efficiency furnace, give our technicians at Air Service Co. a call at 918-212-8943. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.