Can I Earn Tax Credits for My New Furnace?

For most households, there usually seems to be a lengthy list of home improvement projects that they need to complete or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is one task that could be vital to keeping your home comfortable throughout the colder months in McAllen.

Purchasing a new furnace is a large investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your energy bills, but it may be a little daunting at first. The good news is that when you shop for a new energy-efficient furnace, you may 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. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Cytech Heating & Cooling L.C., the experts will help you select a product 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 pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE means the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll find when you select a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. 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 regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by buying a new high-efficiency furnace, give our professionals at Cytech Heating & Cooling L.C. a call at 956-553-3265. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.