Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For a lot of families, there usually seems to be a long list of home improvement to-do’s that they want to get done or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is a task that may be critical to keeping your home comfortable through the colder months in Odessa.

Buying a new furnace is a sizeable investment. You’ll certainly notice the return-on-investment on your indoor comfort along with your utility costs, but it may be a tad intimidating at first. The good news is that when you buy a new energy-efficient furnace, you may be eligible 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 are required to buy 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 browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Redhawk Heating & Air Conditioning, the experts will help you find an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check the furnace you pick 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.

Taking advantage of this opportunity will not be the only savings you’ll observe when you select a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs during the year. And you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by getting a new high-efficiency furnace, give our technicians at Redhawk Heating & Air Conditioning a call at 432-237-0168. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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