Can I Earn Tax Credits for My New Furnace?

For most homeowners, there always seems to be a large list of home improvement to-do’s that they want to get done or new ideas they’d like to try. While several may not be required, furnace replacement is one job that could be vital to keeping your home comfortable throughout the cooler months in Booneville.

Buying a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a bit intimidating at first. The good news is that when you pick a new energy-efficient furnace, you may be qualified 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 receive the tax credit, you are required to buy 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 shopping for furnace replacements, look for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Booneville Heating & Cooling, the experts will help you identify an option that matches 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 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 find when you purchase a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy 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 temperature.

If you think of questions concerning your eligibility for a tax credit, or if there are other local savings you could be eligible for by getting a new high-efficiency furnace, give our technicians at Booneville Heating & Cooling a call at 662-269-8716. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.