Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For a lot of families, there usually seems to be a lengthy list of home improvement projects that they want to get done or new ideas they’d like to try. While some may not be necessary, furnace replacement is an example of a job that might be key to keeping your home comfortable through the winter months in Ballwin and St. Charles.

Selecting a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort as well as your utility 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 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 get 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 heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Air Alliance Team, the experts will help you determine a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy bills all year long. And your household will also have higher confidence in your HVAC system to maintain your indoor space at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our experts at Air Alliance Team a call at 636-206-4250. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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