Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most homeowners, there always seems to be a lengthy list of home improvement projects that they would like to get done or new ideas they’d like to attempt. While some may not be required, furnace replacement is a project that could be key to keeping your home comfortable throughout the colder months in Robstown.

Buying a new furnace is a large investment. You’ll absolutely recognize the return-on-investment on your indoor comfort as well as your utility costs, but it may be a little daunting at first. The good news is that when you shop for 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 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At McNatt Inc, we’ll help you find a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to confirm 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.

This tax credit is not going to be the only savings you’ll find when you purchase a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your utility costs all year long. And you’ll also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you think of questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by getting a new high-efficiency furnace, give our experts at McNatt Inc a call at 361-247-0605. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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