Can I Get a Tax Credit for My New Furnace?

For many families, there usually seems to be a long 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 required, furnace replacement is an example of a project that might be key to keeping your home comfortable during the winter months in West Columbia.

Selecting a new furnace is a great investment. You’ll definitely see the return-on-investment on your indoor comfort as well as your utility costs, but it may be a bit daunting at first. The good news is that when you purchase 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 prolonged through December 31, 2020. In order to obtain the tax credit, you have to buy 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, watch 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 determine a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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 means the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll find when you select a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And your family will also have more confidence in your HVAC system to maintain your indoor space at just the right comfort level.

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