Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For a lot of families, there always seems to be a long list of home improvement projects that they would like to get done or new ideas they’d like to give a shot. While some may not be required, furnace replacement is an example of a project that may be critical to keeping your home comfortable throughout the colder months in Florissant.

Getting a new furnace is a large investment. You’ll certainly see the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a bit overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you could be approved 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 receive the tax credit, you are required to purchase a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At B & B Heating & Cooling, the experts will help you choose a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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.

Taking advantage of this opportunity 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 bills during the year. And you’ll 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 further local savings you could 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 company if you have questions about other eligible home products.

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