Can I Earn Tax Credits for My New Furnace?

For many households, there typically seems to be a large list of home improvement to-do’s that they want to get done or new ideas they’d like to try. While several may not be necessities, furnace replacement is an example of a job that could be critical to keeping your home comfortable during the colder months in Mount Pleasant.

Getting a new furnace is a great investment. You’ll definitely see the return-on-investment on your indoor comfort along with your utility costs, but it may be a bit daunting at first. The good news is that when you pick a new energy-efficient furnace, you might be approved 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 shopping 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 Olde Towne Heating & Air, the experts will help you choose a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to clarify that the furnace you select 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.

This tax credit is not going to be the only savings you’ll receive when you get a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by getting a new high-efficiency furnace, give our technicians at Olde Towne Heating & Air a call at 843-485-0967. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.