Can I get a tax credit for my new furnace?

April 08, 2020

For a lot of families, there always seems to be a large list of home improvement projects that they need to complete or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is one job that might be key to keeping your home comfortable throughout the colder months in Grand Prairie.

Purchasing a new furnace is a large investment. You’ll certainly recognize the return-on-investment on your indoor comfort as well as your energy costs, but it may be a little intimidating at first. The good news is that when you shop for 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 extended through December 31, 2020. In order to obtain the tax credit, you must purchase 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Bon Air Service Company, our team can help you determine an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills all year long. And your household will also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you think of questions regarding your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our technicians at Bon Air Service Company a call at 972-332-1028. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.