Can I receive a tax credit for my new furnace?

April 08, 2020

For many families, there usually seems to be a long list of home improvement projects that they would like to complete or new ideas they’d like to attempt. While some may not be required, furnace replacement is one task that could be critical to keeping your home comfortable throughout the winter months in Shelby.

Getting a new furnace is a sizeable investment. You’ll definitely see the return-on-investment on your indoor comfort along with your energy bills, but it could be a bit daunting at first. The good news is that when you shop for a new energy-efficient furnace, you may 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 have 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, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Hopper Heating and Air, we’ll help you determine a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to check the furnace you select 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.

Qualifying for the tax credit is not going to be the only savings you’ll find when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills during the year. And you’ll also have more confidence in your HVAC system to keep your house at just the right temperature.

If you think of questions about 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 professionals at Hopper Heating and Air a call at 704-233-7363. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.