Can I Get a Tax Credit for My New Furnace?

For most families, there typically seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to give a shot. While several may not be required, furnace replacement is a job that may be critical to keeping your home comfortable during the colder months in Hendersonville.

Selecting a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort as well as your energy costs, but it could be a bit daunting at first. The good news is that when you pick 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 receive the tax credit, you must buy 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 shopping for furnace replacements, look for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Superior Comfort Systems, we’ll help you determine a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 is not going to be the only savings you’ll find when you purchase a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills all year long. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by installing a new high-efficiency furnace, give our teams at Superior Comfort Systems a call at 828-202-7025. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.