Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most households, there always seems to be a lengthy list of home improvement tasks that they want to do or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is one task that could be critical to keeping your home comfortable throughout the cooler months in Hattiesburg.

Getting a new furnace is a great investment. You’ll absolutely see the return-on-investment on your indoor comfort along with your energy bills, but it may be a tad intimidating at first. The good news is that when you pick 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 pushed through December 31, 2020. In order to obtain the tax credit, you are required to purchase 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 browsing for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Oak Grove Heating & Air Conditioning, the experts will help you identify a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to check the furnace you pick 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 is not going to be the only savings you’ll observe when you select a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And your household will also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions regarding 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 teams at Oak Grove Heating & Air Conditioning a call at 601-292-9763. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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