Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most 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 give a shot. While several may not be necessary, furnace replacement is one project that may be key to keeping your home comfortable throughout the cooler months in Hickory.

Getting a new furnace is a great investment. You’ll definitely notice the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a bit daunting 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 prolonged through December 31, 2020. In order to receive the tax credit, you are required to buy 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, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Climate Control Systems, our team can help you determine a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that the furnace you pick 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.

Qualifying for the tax credit is not going to be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And your family will also have more confidence in your HVAC system to help your home stay at just the right temp.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by buying a new high-efficiency furnace, give our technicians at Climate Control Systems a call at 828-283-0369. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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