Can I Earn a Tax Credit for My New Furnace?

For most families, there usually seems to be a long list of home improvement tasks that they need to get done or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is an example of a task that could be critical to keeping your home comfortable throughout the colder months in Siloam Springs.

Selecting a new furnace is a great investment. You’ll definitely realize the return-on-investment on your indoor comfort as well as your utility costs, but it may be a tad overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you could be approved 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 must 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, look for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Siloam Springs Heating & AC, we’ll help you choose an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to confirm 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 is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are other local savings you could be eligible for by installing a new high-efficiency furnace, give our professionals at Siloam Springs Heating & AC a call at 479-308-8176. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.