Can I Receive a Tax Credit for My New Furnace?

For a lot of households, there always seems to be a lengthy list of home improvement projects that they want to complete or new ideas they’d like to try. While several may not be necessities, furnace replacement is an example of a job that might be critical to keeping your home comfortable through the cooler months in Warrenton.

Selecting a new furnace is a great investment. You’ll definitely realize the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a little intimidating at first. The good news is that when you select 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 receive the tax credit, you have 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 looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Schraer Heating & Air Conditioning, we’ll help you determine an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to clarify that the furnace you choose 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 observe when you get a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs during the year. And your family will also have higher confidence in your HVAC system to keep your house at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are further local savings you might be eligible for by buying a new high-efficiency furnace, give our technicians at Schraer Heating & Air Conditioning a call at 636-456-5041. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.