Can I Get Tax Credits for My New Furnace?

For a lot of households, there usually seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is one task that may be critical to keeping your home comfortable through the cooler months in Siloam Springs.

Selecting a new furnace is a big investment. You’ll absolutely see the return-on-investment on your indoor comfort as well as your utility costs, but it might be a little daunting at first. The good news is that when you purchase a new energy-efficient furnace, you may be eligible 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 receive the tax credit, you must buy 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 shopping for furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Siloam Springs Heating & AC, the experts will help you select a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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 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 purchase a new high-efficiency furnace. A lot of the most efficient solutions 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 keep your house at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are further local savings you might be eligible for by purchasing a new high-efficiency furnace, give our teams at Siloam Springs Heating & AC a call at 479-308-8176. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.