Can I Earn a Tax Credit for My New Furnace?

For many households, there typically seems to be a long list of home improvement to-do’s that they want to do or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is one project that could be vital to keeping your home comfortable throughout the cooler months in Bartlesville.

Purchasing a new furnace is a big investment. You’ll definitely see the return-on-investment on your indoor comfort along with your utility costs, but it may be a little daunting at first. The good news is that when you select 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 must select a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, watch for products with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Farris Heating & Air, our team can help you choose a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to confirm the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And your family will also have higher 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 might be eligible for by buying a new high-efficiency furnace, give our technicians at Farris Heating & Air a call at 918-333-0376. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.