Can I receive a tax credit for my new furnace?

April 08, 2020

For many homeowners, there always seems to be a lengthy list of home improvement projects that they want to complete or new ideas they’d like to try. While several may not be required, furnace replacement is an example of a task that might be key to keeping your home comfortable during the cooler months in Central Point.

Getting a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a bit daunting at first. The good news is that when you purchase 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 extended through December 31, 2020. In order to receive the tax credit, you are required to purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Titan Heating & Air Conditioning, we’ll help you find a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate 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 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 buy a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs during the year. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by getting a new high-efficiency furnace, give our professionals at Titan Heating & Air Conditioning a call at 514-600-5499. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.