Can I Receive a Tax Credit for My New Furnace?

For many households, there typically seems to be a large list of home improvement tasks that they would like to get done or new ideas they’d like to try. While several may not be necessary, furnace replacement is an example of a project that could be key to keeping your home comfortable during the cooler months in Lincoln.

Buying a new furnace is a large investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your energy costs, but it could be a bit daunting at first. The good news is that when you buy a new energy-efficient furnace, you could be approved 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 are required to purchase 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, look for products with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At AW Heating & Air Conditioning, the experts will help you determine a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to check the furnace you pick 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.

Qualifying for the tax credit will not be the only savings you’ll observe when you get a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your utility costs throughout the year. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you have questions about your eligibility for a tax credit, or if there are other local savings you could be eligible for by buying a new high-efficiency furnace, give our professionals at AW Heating & Air Conditioning a call at 402-438-7992. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.