Can I Receive Tax Credits for My New Furnace?

For many homeowners, there always seems to be a large list of home improvement tasks that they need to do or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is an example of a task that might be vital to keeping your home comfortable throughout the colder months in Mobile.

Purchasing a new furnace is a sizeable investment. You’ll absolutely notice the return-on-investment on your indoor comfort along with your energy bills, but it might be a bit daunting at first. The good news is that when you buy a new energy-efficient furnace, you could 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 get 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 shopping for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Farnell Heating & Air Conditioning Inc, the experts will help you choose an option that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you pick 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.

Taking advantage of this opportunity 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 during the year. And your family will also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you may be eligible for by installing a new high-efficiency furnace, give our teams at Farnell Heating & Air Conditioning Inc a call at 251-471-2674. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.