Can I Receive Tax Credits for My New Furnace?

For many households, there usually seems to be a large list of home improvement tasks that they would like to get done or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is one project that may be critical to keeping your home comfortable during the cooler months in Huntsville.

Selecting a new furnace is a great investment. You’ll certainly see the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a little daunting at first. The good news is that when you pick a new energy-efficient furnace, you may be approved 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 obtain the tax credit, you are required 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 shopping for furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At All Weather Heating & Air Conditioning Inc, our team can help you identify an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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.

Taking advantage of this opportunity is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And your household will also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by installing a new high-efficiency furnace, give our experts at All Weather Heating & Air Conditioning Inc a call at 256-801-4701. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.