Can I Get a Tax Credit for My New Furnace?

For a lot of households, there typically seems to be a long list of home improvement projects that they want to do or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is a task that could be vital to keeping your home comfortable through the winter months in Oxford.

Buying a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your energy bills, but it might be a little daunting at first. The good news is that when you pick 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 pushed through December 31, 2020. In order to receive the tax credit, you must purchase a furnace that has earned the ENERGY STAR label. Keep in mind 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 heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Franklin's Heating & Air Conditioning, Inc, the experts will help you find a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll receive when you get a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And your family will also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by getting 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.