Can I Earn a Tax Credit for My New Furnace?

For a lot of families, there always seems to be a long list of home improvement projects that they need to complete or new ideas they’d like to attempt. While several may not be required, furnace replacement is a task that may be key to keeping your home comfortable during the cooler months in Rock Hill.

Getting a new furnace is a great investment. You’ll certainly feel the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a bit intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you might be eligible 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 are required 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 shopping for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At US Air Heating and Cooling, our team can help you select an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to clarify that the furnace you pick 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.

Qualifying for the tax credit will not be the only savings you’ll observe when you buy a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your utility costs during the year. And your household will also have higher confidence in your HVAC system to help your home stay at just the right comfort level.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by installing a new high-efficiency furnace, give our teams at US Air Heating and Cooling a call at 803-220-0761. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.