Can I get a tax credit for my new furnace?

April 08, 2020

For most households, there always seems to be a large list of home improvement projects that they need to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is an example of a project that may be vital to keeping your home comfortable during the colder months in Columbia.

Buying a new furnace is a great investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your energy costs, but it could be a bit overwhelming at first. The good news is that when you pick 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 extended through December 31, 2020. In order to get the tax credit, you have to 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 browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Watts Electric & A/C Inc, our team can help you select a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to clarify that the furnace you select 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 will not be the only savings you’ll find when you select a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your utility costs all year long. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you think of questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by getting a new high-efficiency furnace, give our technicians at Watts Electric & A/C Inc a call at 601-736-7362. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.