Can I Receive Tax Credits for My New Furnace?

4/8/2020

For most families, there always seems to be a long list of home improvement projects that they need to complete or new ideas they’d like to try. While some may not be required, furnace replacement is one job that could be vital to keeping your home comfortable through the colder months in Lafayette.

Buying a new furnace is a great investment. You’ll absolutely realize the return-on-investment on your indoor comfort along with your utility costs, but it could be a bit intimidating 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 receive the tax credit, you have to buy 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, look for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At AC Sales, we’ll help you determine a solution that meets your needs and makes sure 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 represents 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 select a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills during the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

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