Can I earn a tax credit for my new furnace?

April 08, 2020

For many families, there typically seems to be a large list of home improvement projects that they want to get done or new ideas they’d like to give a shot. While several may not be required, furnace replacement is one job that could be key to keeping your home comfortable during the colder months in Lafayette.

Selecting a new furnace is a big investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your energy costs, but it may be a bit intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you could 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 get the tax credit, you have to select a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At AC Sales, we’ll help you select an option that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate 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 represents 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 buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency furnace, give our technicians at AC Sales a call at (337) 234-2345. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.