Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most households, there usually seems to be a lengthy list of home improvement projects that they would like to do or new ideas they’d like to try. While some may not be required, furnace replacement is an example of a task that may be vital to keeping your home comfortable throughout the winter months in St. Louis.

Getting a new furnace is a great investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a bit overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you might be eligible 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 obtain the tax credit, you are required 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 shopping for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Morgner Inc. Air Conditioning & Heating, we’ll help you select a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to clarify that the furnace you select 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 buy a new high-efficiency furnace. Many of the most efficient models 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 help your home stay at just the right temp.

If you think of questions regarding your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency furnace, give our technicians at Morgner Inc. Air Conditioning & Heating a call at 314-262-4541. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

Back To Blog