Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many households, there usually seems to be a long list of home improvement projects that they would like to get done or new ideas they’d like to give a shot. While some may not be necessities, furnace replacement is a project that could be vital to keeping your home comfortable throughout the colder months in Lincoln.

Getting a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a tad intimidating at first. The good news is that when you select a new energy-efficient furnace, you may 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, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At AW Heating & Air Conditioning, the experts will help you determine a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll observe when you purchase a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have higher 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 further local savings you may be eligible for by purchasing a new high-efficiency furnace, give our professionals at AW Heating & Air Conditioning a call at 402-318-5351. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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