Can I Receive a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a large 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 an example of a job that could be critical to keeping your home comfortable throughout the winter months in Jefferson City.

Selecting a new furnace is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your energy bills, but it could be a tad overwhelming at first. The good news is that when you select a new energy-efficient furnace, you might be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to receive the tax credit, you have to buy 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 researching furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Stieferman Heating Company Inc, the experts will help you identify a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate 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.

This tax credit won’t be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your utility costs during the year. And your family will also have higher confidence in your HVAC system to keep your house at just the right comfort level.

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