Can I Get Tax Credits for My New Furnace?

For many families, there always seems to be a long list of home improvement tasks that they would like to complete or new ideas they’d like to attempt. While some may not be required, furnace replacement is a task that may be critical to keeping your home comfortable throughout the cooler months in Bedford.

Getting a new furnace is a sizeable investment. You’ll certainly recognize the return-on-investment on your indoor comfort as well as your energy bills, but it could be a little daunting at first. The good news is that when you purchase a new energy-efficient furnace, you may be approved 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 must buy a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At JBR Mechanical, we’ll help you choose a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm the furnace you select 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 will not be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your utility costs all year long. And your family will also have more confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by buying a new high-efficiency furnace, give our professionals at JBR Mechanical a call at 812-266-9785. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.