Can I Earn a Tax Credit for My New Furnace?

For many households, there typically seems to be a long list of home improvement projects that they need to get done or new ideas they’d like to try. While some may not be necessary, furnace replacement is a project that may be critical to keeping your home comfortable throughout the winter months in Hodgenville.

Buying a new furnace is a great investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your energy bills, but it could be a bit overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you might be eligible 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 receive the tax credit, you are required to 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 shopping for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Phelps Heating & Cooling, Inc., we’ll help you identify an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 means the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t 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 utility costs throughout the year. And your family will also have greater confidence in your HVAC system to help your home stay at just the right temperature.

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