Can I earn a tax credit for my new furnace?

April 08, 2020

For many families, there usually seems to be a large list of home improvement projects that they want to complete or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is a job that might be critical to keeping your home comfortable throughout the colder months in Hattiesburg.

Buying a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort along with your energy bills, but it could be a bit overwhelming at first. The good news is that when you select 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 extended through December 31, 2020. In order to receive the tax credit, you have to select 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 shopping for furnace replacements, look for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Oak Grove Heating & Air Conditioning, the experts will help you choose a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to confirm the furnace you choose 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.

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

If you think of questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by getting a new high-efficiency furnace, give our technicians at Oak Grove Heating & Air Conditioning a call at 601-292-9763. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.