Can I earn a tax credit for my new furnace?

April 08, 2020

For many homeowners, there usually seems to be a large list of home improvement to-do’s that they want to get done or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is one task that might be critical to keeping your home comfortable throughout the winter months in Holdrege.

Buying a new furnace is a sizeable investment. You’ll certainly realize the return-on-investment on your indoor comfort along with your utility costs, but it could be a little daunting 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 pushed 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 solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Durable Service , our team can help you choose a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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 represents the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll find when you purchase a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right temp.

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 professionals at Durable Service a call at 308-995-8177. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.