Can I Get Tax Credits for My New Furnace?

For a lot of families, there always seems to be a lengthy list of home improvement projects that they would like to complete or new ideas they’d like to try. While a handful may not be required, furnace replacement is a task that could be critical to keeping your home comfortable through the winter months in Lexington.

Buying a new furnace is a big investment. You’ll definitely realize the return-on-investment on your indoor comfort along with your energy costs, but it might be a bit overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you might 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 have to 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, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At James Heating & A/C, Inc, our team can help you select a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to confirm the furnace you pick 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.

This tax credit won’t be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs all year long. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by purchasing a new high-efficiency furnace, give our technicians at James Heating & A/C, Inc a call at 336-853-6070. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.