Can I Get a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a long list of home improvement to-do’s that they would like to get done or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is one task that might be vital to keeping your home comfortable through the cooler months in Carson City.

Buying a new furnace is a large investment. You’ll definitely feel the return-on-investment on your indoor comfort as well as your energy costs, but it might be a little daunting at first. The good news is that when you buy a new energy-efficient furnace, you could 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 must buy a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Anderson Heating & A/C, our team can 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’ll need 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 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 receive when you buy a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you think of questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by installing a new high-efficiency furnace, give our experts at Anderson Heating & A/C a call at 775-230-7628. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.