Can I Receive a Tax Credit for My New Furnace?

For a lot of homeowners, there typically seems to be a long list of home improvement tasks that they need to complete or new ideas they’d like to try. While several may not be necessary, furnace replacement is one job that might be key to keeping your home comfortable through the winter months in Holdrege.

Buying a new furnace is a great investment. You’ll certainly feel the return-on-investment on your indoor comfort along with your energy costs, but it might be a bit 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 prolonged through December 31, 2020. In order to obtain the tax credit, you have to purchase 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 heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Durable Service, the experts will help you select an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that 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.

This tax credit won’t be the only savings you’ll observe when you select a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy bills all year long. And you’ll also have more confidence in your HVAC system to keep your house at just the right comfort level.

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