Can I earn a tax credit for my new furnace?

April 08, 2020

For a lot of households, there usually seems to be a lengthy list of home improvement tasks that they would like to do or new ideas they’d like to try. While some may not be necessary, furnace replacement is one task that could be critical to keeping your home comfortable through the cooler months in Jefferson City.

Purchasing a new furnace is a big investment. You’ll absolutely recognize the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a little intimidating at first. The good news is that when you select a new energy-efficient furnace, you might 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 receive the tax credit, you are required to 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 looking for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Stieferman Heating Company Inc, our team can help you identify a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy costs throughout the year. And your household will also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying a new high-efficiency furnace, give our teams at Stieferman Heating Company Inc a call at 573-203-3908. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.