Can I get a tax credit for my new furnace?

April 08, 2020

For a lot of homeowners, there typically seems to be a large list of home improvement tasks that they would like to complete or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is a job that might be critical to keeping your home comfortable through the cooler months in Chatsworth.

Buying a new furnace is a sizeable investment. You’ll absolutely see the return-on-investment on your indoor comfort along with your utility costs, but it might be a tad daunting at first. The good news is that when you shop for 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 extended through December 31, 2020. In order to get 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 browsing for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At True Temp Heating & Air Inc, the experts will help you choose an option that fits your needs and ensures 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 indicates 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 purchase a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your utility costs all year long. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency furnace, give our experts at True Temp Heating & Air Inc a call at 706-695-7492. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.