Can I receive a tax credit for my new furnace?

April 08, 2020

For many homeowners, there always seems to be a lengthy list of home improvement to-do’s that they need to complete or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is a job that could be critical to keeping your home comfortable throughout the winter months in Rocky Mount.

Purchasing a new furnace is a large investment. You’ll certainly realize the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a little daunting at first. The good news is that when you pick a new energy-efficient furnace, you could 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 obtain the tax credit, you are required to buy 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 confident you’re picking a high-efficiency furnace.

At Davis Heating & Air Conditioning, our team can help you choose an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need 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.

Qualifying for the tax credit won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And your family will also have more confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you think of questions concerning your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying a new high-efficiency furnace, give our teams at Davis Heating & Air Conditioning a call at 540-369-3790. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.