Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most families, there typically seems to be a long list of home improvement tasks that they would like to complete or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is an example of a job that might be critical to keeping your home comfortable through the cooler months in Grand Prairie.

Buying a new furnace is a large investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your energy bills, but it may be a tad overwhelming at first. The good news is that when you select a new energy-efficient furnace, you might be eligible 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 get 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 solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Mustang Mechanical, we’ll help you select an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to check the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy bills throughout the year. And your family will also have higher confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by getting a new high-efficiency furnace, give our professionals at Mustang Mechanical a call at 972-445-9504. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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