Can I Earn a Tax Credit for My New Furnace?

For many families, there usually seems to be a lengthy list of home improvement to-do’s that they need to get done or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is a project that could be key to keeping your home comfortable during the cooler months in Covington.

Purchasing a new furnace is a large investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a tad daunting at first. The good news is that when you select 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 extended through December 31, 2020. In order to obtain 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 researching furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Covington Air Systems, our team can help you identify a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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.

Taking advantage of this opportunity is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy 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 temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by buying a new high-efficiency furnace, give our teams at Covington Air Systems a call at (770) 462-5319. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.