Can I Get a Tax Credit for My New Furnace?

For many homeowners, there always seems to be a lengthy list of home improvement to-do’s that they need to do or new ideas they’d like to give a shot. While several may not be required, furnace replacement is a job that might be key to keeping your home comfortable during the winter months in Warrenton.

Selecting a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a bit intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you could 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 get the tax credit, you must select 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, watch for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Schraer Heating & Air Conditioning, our team can help you find a solution that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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 find when you select a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your utility costs throughout the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right comfort level.

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