Can I Receive Tax Credits for My New Furnace?

For many households, there typically seems to be a large list of home improvement tasks that they need to get done or new ideas they’d like to give a shot. While some may not be required, furnace replacement is one project that might be key to keeping your home comfortable throughout the colder months in Big Spring.

Buying a new furnace is a sizeable investment. You’ll certainly recognize the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a little overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you may 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 receive the tax credit, you are required to buy a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At SKC AC LLC, we’ll help you find a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to confirm the furnace you pick 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 solutions can save you hundreds of dollars on your utility costs throughout the year. And your family will also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by buying a new high-efficiency furnace, give our professionals at SKC AC LLC a call at 432-203-4881. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.