Can I Receive a Tax Credit for My New Furnace?

For a lot of families, there always seems to be a long list of home improvement projects that they need to do or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is a task that might be vital to keeping your home comfortable through the cooler months in Georgetown.

Purchasing a new furnace is a great investment. You’ll definitely realize the return-on-investment on your indoor comfort as well as your energy costs, but it could be a tad intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you may be qualified 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 get 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 browsing for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Miller Climate Control LLC, we’ll help you determine a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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 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 buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs during the year. And your family will also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions about your eligibility for a tax credit, or if there are further local savings you might be eligible for by installing a new high-efficiency furnace, give our experts at Miller Climate Control LLC a call at 512-937-2001. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.