Can I Get a Tax Credit for My New Furnace?

For many homeowners, there usually seems to be a large list of home improvement tasks that they want to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is an example of a job that could be vital to keeping your home comfortable throughout the colder months in Ballwin and St. Charles.

Purchasing a new furnace is a big investment. You’ll definitely notice the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a tad intimidating at first. The good news is that when you pick a new energy-efficient furnace, you might be qualified 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 obtain the tax credit, you must buy 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 researching furnace replacements, watch for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Air Alliance Team, our team can help you find a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to clarify that the furnace you pick 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.

This tax credit will not be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And your family will also have greater confidence in your HVAC system to keep your house 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 could be eligible for by getting a new high-efficiency furnace, give our teams at Air Alliance Team a call at 636-206-4584. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.