Can I Get a Tax Credit for My New Furnace?

For a lot of families, there usually seems to be a long list of home improvement tasks that they want to get done or new ideas they’d like to try. While some may not be required, furnace replacement is one project that may be critical to keeping your home comfortable throughout the colder months in Muskogee.

Buying a new furnace is a sizeable investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your energy costs, but it could be a little overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you could be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended through December 31, 2020. In order to get the tax credit, you are required to select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Hix Air Conditioning Service, Inc., the experts will help you select a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to confirm the furnace you choose 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 is not going to be the only savings you’ll find when you purchase 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 you’ll also have higher confidence in your HVAC system to keep your house at just the right comfort level.

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 getting a new high-efficiency furnace, give our teams at Hix Air Conditioning Service, Inc. a call at 918-682-8238. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.