Can I Get a Tax Credit for My New Furnace?

For many households, there typically seems to be a long list of home improvement tasks that they want to do or new ideas they’d like to attempt. While several may not be required, furnace replacement is an example of a task that may be key to keeping your home comfortable during the winter months in Pflugerville.

Buying a new furnace is a big investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your utility costs, but it could be a bit overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you may be eligible 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 must purchase 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, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Evenaire Heating & Air Conditioning, the experts will help you determine a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check the furnace you choose 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.

Qualifying for the tax credit will not be the only savings you’ll receive when you get a new high-efficiency furnace. Some of the most efficient furnaces 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 help your home stay at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you might 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 can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.