Can I Receive Tax Credits for My New Furnace?

For a lot of families, there typically seems to be a long list of home improvement tasks that they need to complete or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is one job that might be key to keeping your home comfortable through the cooler months in Oxford.

Getting a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a tad overwhelming 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 get the tax credit, you must 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, watch for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Franklin's Heating & Air Conditioning, Inc, the experts will help you identify a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify 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 represents the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity is not going to be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And your family will also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions regarding 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 technicians at Franklin's Heating & Air Conditioning, Inc a call at 662-281-1231. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.