Can I Receive Tax Credits for My New Furnace?

For most homeowners, there typically seems to be a long list of home improvement projects that they would like to get done or new ideas they’d like to attempt. While some may not be required, furnace replacement is a task that could be critical to keeping your home comfortable throughout the winter months in Tomball.

Purchasing a new furnace is a sizeable investment. You’ll definitely see the return-on-investment on your indoor comfort along with your utility costs, but it might be a bit daunting at first. The good news is that when you pick a new energy-efficient furnace, you may 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 receive the tax credit, you have 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 looking for furnace replacements, watch for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Premium Air Services LLC, we’ll help you find a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 represents 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 buy a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your utility costs all year long. And your household will also have greater confidence in your HVAC system to keep your house at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by getting a new high-efficiency furnace, give our experts at Premium Air Services LLC a call at 713-364-9957. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.