Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For many families, there usually seems to be a long list of home improvement projects that they want to get done or new ideas they’d like to try. While a handful 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 little 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 prolonged through December 31, 2020. In order to get the tax credit, you are required to buy 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 products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At B & B Heating & Cooling, the experts will help you identify a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to confirm 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 will not 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 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 further local savings you could be eligible for by purchasing a new high-efficiency furnace, give our technicians at B & B Heating & Cooling a call at 314-325-7552. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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