Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

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

Buying a new furnace is a big investment. You’ll definitely see the return-on-investment on your indoor comfort along with your utility costs, but it might be a bit overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you could be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to receive the tax credit, you are required to select 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 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 , the experts will help you select a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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 means 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 buy a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility costs throughout the year. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by buying a new high-efficiency furnace, give our experts at Durable Service a call at 308-995-8177. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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