Can I Earn Tax Credits for My New Furnace?

For many homeowners, there always seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is one project that could be key to keeping your home comfortable throughout the colder months in Chadron.

Purchasing a new furnace is a big 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 pick a new energy-efficient furnace, you might be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to get the tax credit, you have to buy 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, look for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At MPC Heating & Cooling, the experts will help you choose a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to clarify that 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.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy bills all year long. And your household will also have higher confidence in your HVAC system to help your home stay 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 could be eligible for by buying a new high-efficiency furnace, give our teams at MPC Heating & Cooling a call at 308-832-4321. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.