Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For a lot of families, there typically seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to try. While some may not be necessities, furnace replacement is a task that could be key to keeping your home comfortable during the winter months in Shreveport.

Buying a new furnace is a large investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your utility costs, but it could be a little daunting at first. The good news is that when you purchase a new energy-efficient furnace, you might be approved 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 receive 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 shopping for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Moon's Air, our team can help you select an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to check the furnace you select 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 won’t 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 all year long. And you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you might be eligible for by installing a new high-efficiency furnace, give our teams at Moon's Air a call at 318-215-7938. 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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