Can I Get Tax Credits for My New Furnace?

For many homeowners, there typically seems to be a large list of home improvement projects that they want to do or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is one project that could be critical to keeping your home comfortable through the colder months in Corpus Christi.

Purchasing a new furnace is a sizeable investment. You’ll absolutely see the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a tad overwhelming at first. The good news is that when you select 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 obtain the tax credit, you must 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 researching furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Total Assurance AC & Heating, the experts will help you choose 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 clarify that the furnace you pick 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 will not be the only savings you’ll receive when you purchase a new high-efficiency furnace. Many of the most efficient products 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 temperature.

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 technicians at Total Assurance AC & Heating a call at 361-217-7080. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.