Can I Get a Tax Credit for My New Furnace?

For most households, there typically seems to be a large list of home improvement tasks that they would like to complete or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is a job that could be critical to keeping your home comfortable through the colder months in Mount Pleasant.

Buying a new furnace is a big investment. You’ll definitely notice the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a tad intimidating at first. The good news is that when you select 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 pushed through December 31, 2020. In order to receive the tax credit, you must buy 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 browsing for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Olde Towne Heating & Air, we’ll help you identify a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate 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.

This tax credit won’t 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 energy costs during the year. And your household will also have more confidence in your HVAC system to keep your house at just the right comfort level.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying a new high-efficiency furnace, give our professionals 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.