Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For a lot of homeowners, there always 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 some may not be necessities, furnace replacement is one task that may be vital to keeping your home comfortable during the colder months in Omaha.

Selecting a new furnace is a sizeable investment. You’ll definitely realize the return-on-investment on your indoor comfort along with your energy bills, but it might be a bit intimidating at first. The good news is that when you pick a new energy-efficient furnace, you may 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 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, watch for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At The Frazier Company, we’ll help you find an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to check 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 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 utility costs 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 about your eligibility for a tax credit, or if there are other local savings you could be eligible for by buying a new high-efficiency furnace, give our experts at The Frazier Company a call at 402-896-5900. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

Back To Blog