Can I Earn a Tax Credit for My New Furnace?

For a lot of families, there usually seems to be a lengthy list of home improvement to-do’s that they need to do or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is a project that might be vital to keeping your home comfortable throughout the cooler months in Auburn and Opelika.

Selecting a new furnace is a large investment. You’ll absolutely notice the return-on-investment on your indoor comfort as well as your utility costs, but it may be a bit intimidating at first. The good news is that when you buy a new energy-efficient furnace, you may be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Farnell Mechanical, Inc., the experts will help you find a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important 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 represents the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll receive 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 maintain your indoor space at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by buying a new high-efficiency furnace, give our technicians at Farnell Mechanical, Inc. a call at 334-524-2458. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.