Can I Receive a Tax Credit for My New Furnace?

For a lot of households, there usually seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is a task that may be critical to keeping your home comfortable throughout the colder months in McKinney and Frisco.

Purchasing a new furnace is a sizeable investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a bit daunting at first. The good news is that when you purchase a new energy-efficient furnace, you might 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 receive 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 researching furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Bell Mechanical Services, the experts will help you find a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to clarify that the furnace you choose 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.

Taking advantage of this opportunity is not going to be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills throughout the year. And your household will also have greater confidence in your HVAC system to help your home stay at just the right temp.

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