Can I Earn a Tax Credit for My New Furnace?

For a lot of families, there always seems to be a large list of home improvement to-do’s that they would like to do or new ideas they’d like to give a shot. While several may not be required, furnace replacement is an example of a project that might be critical to keeping your home comfortable during the cooler months in Albuquerque.

Buying a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a little daunting at first. The good news is that when you select 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 receive the tax credit, you have to select 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, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At I-Deal HVAC, the experts will help you find 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.

This tax credit is not going to be the only savings you’ll find 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 during the year. And your family will also have more confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our experts at I-Deal HVAC a call at 505-445-1250. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.