Can I Get a Tax Credit for My New Furnace?

For most families, there usually seems to be a long list of home improvement projects that they need to complete or new ideas they’d like to try. While some may not be necessary, furnace replacement is a task that may be key to keeping your home comfortable during the winter months in West Columbia.

Getting a new furnace is a great investment. You’ll definitely recognize the return-on-investment on your indoor comfort as well as your energy bills, but it could be a little intimidating at first. The good news is that when you pick 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 extended through December 31, 2020. In order to receive the tax credit, you have to 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 looking for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Tri City Fuel & Heating, our team can help you determine an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to clarify that the furnace you select 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 find when you select a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy bills all year long. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temp.

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