Can I Receive a Tax Credit for My New Furnace?

For many homeowners, there typically seems to be a large list of home improvement to-do’s that they want to complete or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is an example of a task that might be vital to keeping your home comfortable during the winter months in Holdrege.

Selecting a new furnace is a big investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a little overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you might be eligible 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 have to 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, look for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Durable Service, the experts will help you determine a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient products 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 temperature.

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