Can I receive a tax credit for my new furnace?

April 08, 2020

For most households, there always seems to be a large list of home improvement projects that they need to get done or new ideas they’d like to give a shot. While several may not be required, furnace replacement is one job that may be critical to keeping your home comfortable throughout the cooler months in Bossier City.

Selecting a new furnace is a great investment. You’ll certainly recognize the return-on-investment on your indoor comfort as well as your energy costs, but it may be a bit daunting at first. The good news is that when you pick a new energy-efficient furnace, you might be approved 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 receive 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 browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Central Aire Heating & A/C Inc, we’ll help you select a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to check 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 will not be the only savings you’ll observe when you select a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills during the year. And you’ll also have more confidence in your HVAC system to keep your house at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are further local savings you may be eligible for by buying a new high-efficiency furnace, give our professionals at Central Aire Heating & A/C Inc a call at 318-855-2326. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.