Can I Receive Tax Credits for My New Furnace?

For a lot of households, there always seems to be a long list of home improvement tasks that they would like to do or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is an example of a project that may be vital to keeping your home comfortable throughout the cooler months in Pflugerville.

Buying a new furnace is a great investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your energy costs, but it might be a little overwhelming at first. The good news is that when you select 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 purchase 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 researching 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 Evenaire Heating & Air Conditioning, we’ll help you find a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to clarify that the furnace you choose 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 will not be the only savings you’ll observe when you get a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your utility costs all year long. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you have questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by installing a new high-efficiency furnace, give our professionals at Evenaire Heating & Air Conditioning a call at 512-355-1482. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.