Can I receive a tax credit for my new furnace?

April 08, 2020

For most homeowners, there always seems to be a large list of home improvement tasks that they need to complete or new ideas they’d like to try. While some may not be necessities, furnace replacement is a project that may be key to keeping your home comfortable during the winter months in the Rio Grande Valley.

Purchasing a new furnace is a sizeable investment. You’ll absolutely notice the return-on-investment on your indoor comfort as well as your energy costs, but it may be a little daunting at first. The good news is that when you buy a new energy-efficient furnace, you might 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 receive the tax credit, you have to select 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, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Cytech Heating & Cooling L.C., our team can help you select a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 won’t be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy costs all year long. And your family will also have greater confidence in your HVAC system to help your home stay at just the right comfort level.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you may be eligible for by getting a new high-efficiency furnace, give our professionals at Cytech Heating & Cooling L.C. a call at 956-381-1162. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.