Can I Earn a Tax Credit for My New Furnace?

For a lot of households, there usually seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is an example of a project that could be key to keeping your home comfortable during the winter months in Auburn and Opelika.

Buying a new furnace is a large investment. You’ll definitely see the return-on-investment on your indoor comfort as well as your utility costs, but it may be a tad daunting at first. The good news is that when you select 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 pushed through December 31, 2020. In order to obtain the tax credit, you are required to 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 shopping for furnace replacements, watch for products with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Farnell Mechanical, Inc., our team can help you choose a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to confirm 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.

Qualifying for the tax credit will not be the only savings you’ll observe when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills 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 concerning your eligibility for a tax credit, or if there are further local savings you could be eligible for by purchasing a new high-efficiency furnace, give our professionals at Farnell Mechanical, Inc. a call at 334-524-2458. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.