Can I Earn a Tax Credit for My New Furnace?

For a lot of homeowners, there usually seems to be a long list of home improvement tasks that they want to complete or new ideas they’d like to try. While some may not be necessary, furnace replacement is an example of a task that might be vital to keeping your home comfortable through the colder months in McKinney and Frisco.

Getting a new furnace is a great investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your utility costs, but it could be a tad intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you may 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 are required to 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 researching furnace replacements, watch for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Bell Mechanical Services, we’ll help you choose an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate 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 indicates 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 buy a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills all year long. And your family will also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by installing a new high-efficiency furnace, give our experts at Bell Mechanical Services a call at 888-863-0560. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.