Can I Get a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a large list of home improvement to-do’s that they want to get done or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is a task that could be key to keeping your home comfortable throughout the colder months in Omaha.

Selecting a new furnace is a large investment. You’ll certainly feel the return-on-investment on your indoor comfort as well as your energy bills, but it may be a bit daunting at first. The good news is that when you select 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 extended through December 31, 2020. In order to get the tax credit, you are required to select 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 looking for furnace replacements, watch for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At The Frazier Company, we’ll help you identify 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 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.

Qualifying for the tax credit is not going to be the only savings you’ll find when you purchase a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your utility costs throughout the year. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you might be eligible for by installing a new high-efficiency furnace, give our experts at The Frazier Company a call at 402-628-0206. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.