Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most households, there typically seems to be a large list of home improvement to-do’s that they need to complete or new ideas they’d like to give a shot. While several may not be required, furnace replacement is an example of a task that might be vital to keeping your home comfortable through the colder months in Carlsbad.

Buying a new furnace is a sizeable investment. You’ll certainly realize the return-on-investment on your indoor comfort as well as your utility costs, but it may be a little overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you might be approved 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 get the tax credit, you have to select 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, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Banister's Heating & Air Conditioning Services, our team can help you determine a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to check 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.

This tax credit won’t be the only savings you’ll receive when you select a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy bills throughout the year. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by purchasing a new high-efficiency furnace, give our technicians at Banister's Heating & Air Conditioning Services a call at 575-446-3948. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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