Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For a lot of homeowners, there usually seems to be a lengthy list of home improvement to-do’s that they need to do or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is one task that might be vital to keeping your home comfortable through the winter months in Lexington.

Selecting a new furnace is a sizeable investment. You’ll certainly see the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a little daunting at first. The good news is that when you shop for 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 get 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, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At James Heating & A/C, Inc, we’ll help you find an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to confirm the furnace you select 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 is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have more confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you could be eligible for by getting a new high-efficiency furnace, give our experts 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.

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