Can I Receive Tax Credits for My New Furnace?

For many families, there always seems to be a large list of home improvement projects that they need to do or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is one project that could be vital to keeping your home comfortable throughout the winter months in Lexington.

Buying a new furnace is a large investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your energy costs, but it may be a bit overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you may be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to get 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 shopping for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At James Heating & A/C, Inc, we’ll help you determine a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to confirm the furnace you choose 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 won’t be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your utility costs 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 have questions regarding your eligibility for a tax credit, or if there are further local savings you might be eligible for by purchasing a new high-efficiency furnace, give our technicians at James Heating & A/C, Inc a call at 336-853-6070. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.