Can I Get a Tax Credit for My New Furnace?

For many 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 some may not be necessary, furnace replacement is one project that could be vital to keeping your home comfortable throughout the colder months in Tomball.

Purchasing a new furnace is a sizeable investment. You’ll certainly notice the return-on-investment on your indoor comfort along with your utility costs, but it might be a tad 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 get the tax credit, you are required to select 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, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Premium Air Services LLC, our team can help you find a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you choose 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.

This tax credit won’t be the only savings you’ll observe when you purchase a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And your family will also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions concerning 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 experts at Premium Air Services LLC a call at 713-364-9957. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.