Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For many families, there typically seems to be a long list of home improvement tasks that they want to do or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is a project that may be key to keeping your home comfortable through the winter months in Columbia.

Buying a new furnace is a sizeable investment. You’ll definitely see the return-on-investment on your indoor comfort along with your utility costs, but it could be a little intimidating at first. The good news is that when you select a new energy-efficient furnace, you could be eligible 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 receive the tax credit, you have to purchase a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When researching furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Watts Electrical & Air Conditioning, we’ll help you find a product that fits your needs and ensures 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.

Qualifying for the tax credit won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs all year long. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by buying a new high-efficiency furnace, give our technicians at Watts Electrical & Air Conditioning 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.

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