Can I Earn Tax Credits for My New Furnace?

For many families, there usually seems to be a large list of home improvement projects that they would like to get done or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is a job that could be critical to keeping your home comfortable throughout the winter months in Safford.

Buying a new furnace is a sizeable investment. You’ll definitely see the return-on-investment on your indoor comfort along with your utility costs, but it might be a tad daunting at first. The good news is that when you shop for a new energy-efficient furnace, you could 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 get the tax credit, you have 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, look for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At B&D Air Conditioning, the experts will help you identify an option that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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.

This tax credit will not be the only savings you’ll observe when you purchase a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy costs all year long. And your household will also have more confidence in your HVAC system to keep your house at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying a new high-efficiency furnace, give our experts at B&D Air Conditioning a call at 928-432-6018. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.