Can I Receive a Tax Credit for My New Furnace?

For a lot of families, there always seems to be a lengthy list of home improvement to-do’s that they would like to do or new ideas they’d like to attempt. While some may not be necessities, furnace replacement is an example of a task that may be critical to keeping your home comfortable through the cooler months in Mobile.

Buying a new furnace is a big investment. You’ll absolutely recognize the return-on-investment on your indoor comfort as well as your utility costs, but it might be a little intimidating at first. The good news is that when you buy a new energy-efficient furnace, you might be qualified 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 select 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 researching furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Farnell Heating & Air Conditioning Inc, our team can help you find an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills throughout the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by installing a new high-efficiency furnace, give our technicians at Farnell Heating & Air Conditioning Inc a call at 251-471-2674. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.