Can I get a tax credit for a new furnace? | Bell Air Conditioning Inc

Can I get a tax credit for my new furnace?

April 08, 2020

For most families, there usually seems to be a large list of home improvement to-do’s that they need to complete or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is one project that might be critical to keeping your home comfortable during the cooler months in Temple/Belton.

Buying a new furnace is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your energy costs, but it might be a little intimidating at first. The good news is that when you shop for 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 prolonged through December 31, 2020. In order to receive the tax credit, you must 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Bell Air Conditioning Inc, we’ll help you select a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate 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.

This tax credit will not be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temp.

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying a new high-efficiency furnace, give our technicians at Bell Air Conditioning Inc a call at 254-307-9572. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.