Can I Receive a Tax Credit for My New Furnace?

For many homeowners, there always seems to be a large list of home improvement to-do’s that they want to complete or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is a project that could be vital to keeping your home comfortable through the colder months in Lincoln.

Purchasing a new furnace is a large investment. You’ll certainly see the return-on-investment on your indoor comfort along with your utility costs, but it could be a bit overwhelming at first. The good news is that when you buy 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 pushed through December 31, 2020. In order to obtain the tax credit, you are required to buy 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 browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be confident 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 makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 represents the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll observe when you buy a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And your household will also have higher confidence in your HVAC system to maintain your indoor space at just the right temp.

If you have 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 technicians at AW Heating & Air Conditioning a call at 402-438-7992. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.