Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many families, there usually seems to be a lengthy list of home improvement tasks that they would like to complete or new ideas they’d like to try. While several may not be necessities, furnace replacement is a project that may be vital to keeping your home comfortable during the winter months in Denton.

Getting a new furnace is a great investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your energy costs, but it may be a tad daunting at first. The good news is that when you select a new energy-efficient furnace, you may 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 obtain 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 looking for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Oak Point Heating and Air LLC, the experts will help you select an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll observe when you select a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs all year long. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions about 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 professionals at Oak Point Heating and Air LLC a call at 940-202-1202. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

Back To Blog