Can I Earn a Tax Credit for My New Furnace?

For a lot of homeowners, there typically seems to be a large list of home improvement tasks that they want to do or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is an example of a project that could be key to keeping your home comfortable during the colder months in Magnolia.

Getting a new furnace is a big investment. You’ll definitely see the return-on-investment on your indoor comfort along with your energy costs, but it may be a little daunting at first. The good news is that when you select 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 extended 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 researching furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At JTech Mechanical, our team can help you determine an option that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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 means 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 buy a new high-efficiency furnace. Many of the most efficient solutions 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 temperature.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by buying a new high-efficiency furnace, give our technicians at JTech Mechanical a call at 281-231-8768. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.