Can I Earn Tax Credits for My New Furnace?

For a lot of families, there usually seems to be a long list of home improvement to-do’s that they want to do or new ideas they’d like to attempt. While several may not be required, furnace replacement is one task that may be critical to keeping your home comfortable during the colder months in Lincoln.

Purchasing a new furnace is a big investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a tad daunting at first. The good news is that when you select a new energy-efficient furnace, you might be eligible 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 receive 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 browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At AW Heating & Air Conditioning, our team can help you choose a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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 means the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity will not be the only savings you’ll observe when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your utility costs all year long. And your family will also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by installing a new high-efficiency furnace, give our technicians at AW Heating & Air Conditioning a call at 402-438-7992. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.