Can I get a tax credit for my new furnace?

April 08, 2020

For most homeowners, there always seems to be a lengthy list of home improvement tasks that they need to complete or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is an example of a job that may be key to keeping your home comfortable through the cooler months in Oxford.

Purchasing a new furnace is a great investment. You’ll certainly feel the return-on-investment on your indoor comfort along with your utility costs, but it might be a bit intimidating at first. The good news is that when you shop for 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 prolonged through December 31, 2020. In order to obtain the tax credit, you have 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 looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Franklin's Heating & Air Conditioning, Inc, we’ll help you identify a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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.

Taking advantage of this opportunity will not be the only savings you’ll find when you get a new high-efficiency furnace. Many of the most efficient solutions 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 maintain your indoor space at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at Franklin's Heating & Air Conditioning, Inc a call at 662-281-1231. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.