Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most homeowners, there usually seems to be a long list of home improvement tasks that they would like 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 critical to keeping your home comfortable through the colder months in Chadron.

Getting a new furnace is a big investment. You’ll certainly realize the return-on-investment on your indoor comfort as well as your energy bills, but it might be a tad daunting at first. The good news is that when you pick 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 receive 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, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At MPC Heating & Cooling, our team can help you identify a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy bills during the year. And your household will also have more confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you may be eligible for by installing a new high-efficiency furnace, give our experts at MPC Heating & Cooling a call at 308-832-4321. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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