Can I Get a Tax Credit for My New Furnace?

For many families, there usually seems to be a long list of home improvement tasks that they would like to get done or new ideas they’d like to give a shot. While some may not be necessities, furnace replacement is an example of a project that may be critical to keeping your home comfortable through the cooler months in West Columbia.

Purchasing a new furnace is a great investment. You’ll certainly feel the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a tad daunting at first. The good news is that when you select a new energy-efficient furnace, you may 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 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 browsing for 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 Tri City Fuel & Heating, the experts will help you choose a solution that matches 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 choose 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.

Taking advantage of this opportunity is not going to be the only savings you’ll receive when you purchase a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility costs throughout the year. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you could be eligible for by installing a new high-efficiency furnace, give our technicians at Tri City Fuel & Heating a call at 803-265-4208. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.