Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most homeowners, there typically 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 a handful may not be required, furnace replacement is an example of a project that may be key to keeping your home comfortable through the winter months in Kingsville.

Buying a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort along with your energy costs, but it could be a tad overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you may be approved 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 get the tax credit, you are required to select 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, look for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Four Seasons Air Conditioning and Heating LLC, we’ll help you select a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll observe when you select a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy costs during the year. And your household will also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by buying a new high-efficiency furnace, give our experts at Four Seasons Air Conditioning and Heating LLC a call at 361-214-1203. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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