Can I Earn a Tax Credit for My New Furnace?

For many families, there typically seems to be a large list of home improvement to-do’s that they want to get done or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is an example of a task that might be key to keeping your home comfortable through the winter months in Omaha.

Buying a new furnace is a big investment. You’ll definitely realize the return-on-investment on your indoor comfort along with your energy costs, but it could be a bit intimidating at first. The good news is that when you buy a new energy-efficient furnace, you might be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to receive the tax credit, you have to select 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 heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Interstate Heating & Air Conditioning, we’ll help you find a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check 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 is not going to be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And your family will also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by buying a new high-efficiency furnace, give our experts at Interstate Heating & Air Conditioning a call at 402-509-5940. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.