Can I get a tax credit for my new furnace?

April 08, 2020

For a lot of homeowners, there typically seems to be a large list of home improvement tasks that they want to get done or new ideas they’d like to try. While several may not be necessary, furnace replacement is one task that could be key to keeping your home comfortable through the colder months in Florissant.

Purchasing a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your utility costs, but it may be a bit intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you could be qualified 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 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 solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At B & B Heating & Cooling, the experts will help you determine an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to clarify that 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 buy a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills during the year. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right temp.

If you come across questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by buying a new high-efficiency furnace, give our technicians at B & B Heating & Cooling a call at 314-325-7552. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.