Can I Get a Tax Credit for My New Furnace?

For a lot of families, there typically seems to be a long list of home improvement projects that they need to complete or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is a project that could be key to keeping your home comfortable during the cooler months in Jefferson City.

Purchasing a new furnace is a great investment. You’ll certainly recognize the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a tad overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you may be eligible 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 receive the tax credit, you must purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, watch for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Stieferman Heating Company Inc, we’ll help you identify an option that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check 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.

This tax credit is not going to be the only savings you’ll observe when you purchase a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And your family will also have more confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you might be eligible for by installing a new high-efficiency furnace, give our experts at Stieferman Heating Company Inc a call at 573-635-3547. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.