Can I Earn a Tax Credit for My New Furnace?

For a lot of families, there typically seems to be a long list of home improvement to-do’s that they would like to do or new ideas they’d like to give a shot. While some may not be required, furnace replacement is a task that could be critical to keeping your home comfortable throughout the colder months in Saint Louis.

Selecting a new furnace is a large investment. You’ll definitely see the return-on-investment on your indoor comfort as well as your energy bills, but it might be a little overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you may 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 obtain the tax credit, you must 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 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 find a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check 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 will not be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills throughout the year. And your household will also have more confidence in your HVAC system to keep your house at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are further local savings you might be eligible for by getting a new high-efficiency furnace, give our professionals at Morgner Inc. Air Conditioning & Heating a call at 314-262-4541. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.