Can I Get a Tax Credit for My New Furnace?

For a lot of households, there typically seems to be a lengthy list of home improvement projects that they want to do or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is an example of a project that might be critical to keeping your home comfortable throughout the colder months in Georgetown.

Selecting a new furnace is a big investment. You’ll definitely realize the return-on-investment on your indoor comfort along with your utility costs, but it could be a bit intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you could be qualified 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 must select 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, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Miller Climate Control LLC, our team can help you determine a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm 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.

This tax credit will not be the only savings you’ll receive when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills all year long. And your family will also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by installing a new high-efficiency furnace, give our experts at Miller Climate Control LLC a call at 512-937-2001. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.