Family enjoying the comfort of home

Can I receive 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 want to complete or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is one task that may be vital to keeping your home comfortable throughout the cooler months in Wharton.

Selecting a new furnace is a big investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your energy costs, but it could be a tad intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you could 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 receive 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 shopping for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Faust Air Conditioning and Heating, the experts will help you choose a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to confirm the furnace you select 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 will not be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills during the year. And your family will also have more confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you have questions regarding your eligibility for a tax credit, or if there are further local savings you might be eligible for by purchasing a new high-efficiency furnace, give our professionals at Faust Air Conditioning and Heating a call at 979-323-6130. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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