Can I Get a Tax Credit for My New Furnace?

For most households, there always seems to be a large list of home improvement tasks that they would like to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is an example of a job that may be vital to keeping your home comfortable through the cooler months in Chadron.

Selecting a new furnace is a large investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your energy costs, but it could be a bit daunting at first. The good news is that when you shop for 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 prolonged through December 31, 2020. In order to obtain the tax credit, you are required to purchase 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 looking for furnace replacements, look for solutions 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 choose a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to check the furnace you choose 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 is not going to be the only savings you’ll observe when you buy a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And your family will also have more confidence in your HVAC system to maintain your indoor space at just the right comfort level.

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