Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For a lot of homeowners, there usually seems to be a large list of home improvement projects that they need to get done or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is one task that could be vital to keeping your home comfortable during the colder months in Tomball.

Selecting a new furnace is a large investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your energy bills, but it could be a little overwhelming at first. The good news is that when you pick 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 receive the tax credit, you must purchase 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, look 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 identify a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to clarify that the furnace you select 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.

Qualifying for the tax credit will not be the only savings you’ll find when you purchase a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And your family will also have more confidence in your HVAC system to help your home stay at just the right temp.

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

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