Can I Receive a Tax Credit for My New Furnace?

For most households, there typically seems to be a lengthy list of home improvement to-do’s that they would like to do or new ideas they’d like to try. While several may not be required, furnace replacement is one task that may be vital to keeping your home comfortable through the winter months in Florissant and St. Charles.

Buying a new furnace is a large investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your energy bills, but it might be a tad overwhelming at first. The good news is that when you pick 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 obtain the tax credit, you are required 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 selecting a high-efficiency furnace.

At B & B Heating & Cooling, the experts will help you find a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important 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 represents the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills all year long. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

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