Can I Earn a Tax Credit for My New Furnace?

For most households, there usually seems to be a long list of home improvement projects that they need to complete or new ideas they’d like to attempt. While several may not be required, furnace replacement is a task that may be key to keeping your home comfortable throughout the winter months in Mount Pleasant.

Purchasing a new furnace is a great investment. You’ll definitely see the return-on-investment on your indoor comfort as well as your energy bills, but it could be a little daunting at first. The good news is that when you buy 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 purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Olde Towne Heating & Air, we’ll help you find a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to clarify that 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 won’t be the only savings you’ll find when you purchase a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And your household will also have more confidence in your HVAC system to keep your house at just the right temperature.

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