Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most homeowners, there typically seems to be a large list of home improvement tasks that they would like to do or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is an example of a project that might be critical to keeping your home comfortable through the winter months in Excelsior Springs.

Buying a new furnace is a big investment. You’ll definitely realize the return-on-investment on your indoor comfort as well as your utility costs, but it could be a bit intimidating at first. The good news is that when you select 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 extended 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 browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Colvin's Heating and Cooling, we’ll help you find 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 confirm the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll find when you purchase a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy bills during the year. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are further local savings you might be eligible for by installing a new high-efficiency furnace, give our professionals at Colvin's Heating and Cooling a call at 816-379-3918. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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