Can I Receive a Tax Credit for My New Furnace?

For many homeowners, there always seems to be a long list of home improvement tasks that they want to complete or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is a task that might be vital to keeping your home comfortable through the colder months in Chadron.

Selecting a new furnace is a large investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your energy bills, but it could be a tad intimidating at first. The good news is that when you buy 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 pushed through December 31, 2020. In order to receive 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 solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At MPC Heating & Cooling, our team can help you find a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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 means the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Some 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 maintain your indoor space at just the right temperature.

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