Can I Receive a Tax Credit for My New Furnace?

For a lot of households, there typically seems to be a long list of home improvement to-do’s that they want to get done or new ideas they’d like to try. While a handful may not be required, furnace replacement is one task that might be vital to keeping your home comfortable through the winter months in Ballwin and St. Charles.

Getting a new furnace is a big investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your energy costs, but it might be a bit daunting at first. The good news is that when you purchase 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 extended through December 31, 2020. In order to get the tax credit, you must 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 shopping for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Air Alliance Team, we’ll help you determine a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll find when you get a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right temp.

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