Can I Earn a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a long list of home improvement projects that they need to do or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is a job that may be key to keeping your home comfortable during the cooler months in Hodgenville.

Selecting a new furnace is a sizeable investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your energy costs, but it might be a tad overwhelming at first. The good news is that when you shop for 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 get the tax credit, you must buy 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 looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Phelps Heating & Cooling, Inc., the experts will help you select an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to check 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 observe when you purchase a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills all year long. And your household will also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions about your eligibility for a tax credit, or if there are further local savings you may be eligible for by purchasing a new high-efficiency furnace, give our experts at Phelps Heating & Cooling, Inc. a call at 270-358-3167. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.