Can I Get a Tax Credit for My New Furnace?

For many households, there always seems to be a long list of home improvement to-do’s that they want to do or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is one project that could be key to keeping your home comfortable during the cooler months in Ballwin and St. Charles.

Selecting a new furnace is a big investment. You’ll certainly feel the return-on-investment on your indoor comfort along with your energy costs, but it may be a bit intimidating at first. The good news is that when you select a new energy-efficient furnace, you may 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 purchase 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 confident you’re selecting a high-efficiency furnace.

At Air Alliance Team, the experts will help you identify a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to clarify that the furnace you select has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates 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 observe when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills during the year. And your family will also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by installing a new high-efficiency furnace, give our teams at Air Alliance Team a call at 636-206-4584. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.