Can I Get a Tax Credit for My New Furnace?

For many families, there always seems to be a large list of home improvement projects that they would like to complete or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is one job that might be key to keeping your home comfortable throughout the colder months in Yukon.

Purchasing a new furnace is a sizeable investment. You’ll certainly feel the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a little overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you may 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 receive the tax credit, you have 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 shopping for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Comfort Concepts Heating & Air Conditioning, we’ll help you select an option that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to confirm 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.

This tax credit is not going to be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by getting a new high-efficiency furnace, give our experts at Comfort Concepts Heating & Air Conditioning a call at 405-494-7444. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.