Can I get a tax credit for my new furnace?

April 08, 2020

For most families, there always seems to be a long list of home improvement to-do’s that they need to do or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is an example of a job that may be key to keeping your home comfortable through the winter months in Wharton.

Purchasing a new furnace is a sizeable investment. You’ll definitely feel the return-on-investment on your indoor comfort as well as your utility costs, but it may be a tad intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you could be approved 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 get 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 products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Faust Air Conditioning and Heating, we’ll help you choose a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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 indicates 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 get a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your utility costs all year long. And your family will also have greater confidence in your HVAC system to keep your house 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 purchasing a new high-efficiency furnace, give our technicians at Faust Air Conditioning and Heating a call at 979-323-6130. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.