Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For many homeowners, there usually seems to be a lengthy list of home improvement projects that they want to do or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is one project that could be key to keeping your home comfortable through the winter months in Jefferson City.

Purchasing a new furnace is a big investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a bit daunting at first. The good news is that when you shop for 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 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 products with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Stieferman Heating Company Inc, we’ll help you identify 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 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.

Qualifying for the tax credit won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And you’ll also have more confidence in your HVAC system to keep your house at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you might 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.

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