Can I Receive a Tax Credit for My New Furnace?

For most households, there usually seems to be a large list of home improvement to-do’s that they need to complete or new ideas they’d like to try. While some may not be necessary, furnace replacement is a project that could be critical to keeping your home comfortable throughout the winter months in Lexington.

Selecting a new furnace is a great investment. You’ll certainly see the return-on-investment on your indoor comfort along with your energy bills, but it may be a little intimidating at first. The good news is that when you select 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 must select 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, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At James Heating & A/C, Inc, we’ll help you determine a solution that fits 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 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.

Taking advantage of this opportunity will not be the only savings you’ll receive when you select a new high-efficiency furnace. Some of the most efficient products 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 help your home stay at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are other local savings you might 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 can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.