Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For many households, there usually seems to be a long list of home improvement to-do’s that they want to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is one project that may be vital to keeping your home comfortable throughout the colder months in Omaha.

Selecting a new furnace is a large investment. You’ll certainly realize the return-on-investment on your indoor comfort along with your energy bills, but it might be a little daunting at first. The good news is that when you pick a new energy-efficient furnace, you might be eligible 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 select 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At The Frazier Company, our team can help you select a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to confirm the furnace you choose 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 select a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And your household will also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

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 purchasing 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 organization if you have questions about other eligible home products.

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