Can I Earn a Tax Credit for My New Furnace?

For a lot of households, there always seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is an example of a task that may be critical to keeping your home comfortable throughout the cooler months in Central Point.

Getting a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a tad intimidating 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 extended through December 31, 2020. In order to receive the tax credit, you have to buy 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 shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Titan Heating & Air Conditioning, our team can help you identify 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 means the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll receive when you select 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 more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you have questions about your eligibility for a tax credit, or if there are further local savings you might be eligible for by purchasing a new high-efficiency furnace, give our teams at Titan Heating & Air Conditioning a call at 541-286-6617. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.