Can I Receive a Tax Credit for My New Furnace?

For a lot of households, there usually seems to be a lengthy list of home improvement to-do’s that they would like to complete or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is an example of a project that may be vital to keeping your home comfortable during the winter months in Norco and surrounding parishes.

Purchasing a new furnace is a big investment. You’ll definitely see the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a tad intimidating 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 have to 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 browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Mayeuxs AC & Heating, we’ll help you choose an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need 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 select a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And your household 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 buying a new high-efficiency furnace, give our professionals at Mayeuxs AC & Heating a call at (985) 764-2426. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.