Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many families, there always seems to be a large list of home improvement projects that they need to complete or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is one project that could be vital to keeping your home comfortable throughout the cooler months in Huntsville.

Getting a new furnace is a sizeable investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a bit overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you might 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 must select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At All Weather Heating & Air Conditioning Inc, we’ll help you determine a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to clarify that the furnace you choose 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.

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 models 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 temp.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you might be eligible for by getting a new high-efficiency furnace, give our professionals at All Weather Heating & Air Conditioning Inc a call at 256-801-4701. 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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