Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most families, there always seems to be a lengthy list of home improvement to-do’s that they want to get done or new ideas they’d like to give a shot. While several may not be required, furnace replacement is a task that may be critical to keeping your home comfortable through the winter months in Tuscaloosa.

Purchasing a new furnace is a sizeable investment. You’ll certainly realize the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a bit daunting at first. The good news is that when you shop for 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 extended through December 31, 2020. In order to obtain 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 shopping for furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At KDM Service Corporation, our team can help you select an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate 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 won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy costs all year long. And your household will also have greater confidence in your HVAC system to keep your house at just the right temp.

If you have 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 technicians at KDM Service Corporation a call at 205-208-8090. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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