Can I Earn a Tax Credit for My New Furnace?

For many homeowners, there typically seems to be a long list of home improvement tasks that they would like to do or new ideas they’d like to try. While some may not be necessities, furnace replacement is a task that may be vital to keeping your home comfortable during the winter months in Bartlesville.

Buying a new furnace is a sizeable investment. You’ll certainly see the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a tad intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you could be eligible 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 obtain the tax credit, you are required 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 looking for furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Farris Heating & Air, our team can help you determine an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to check the furnace you pick 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.

Taking advantage of this opportunity won’t be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy costs during the year. And your household will also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you think of questions regarding your eligibility for a tax credit, or if there are other local savings you may be eligible for by purchasing a new high-efficiency furnace, give our professionals at Farris Heating & Air a call at 918-333-0376. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.