Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most families, there always seems to be a large list of home improvement projects that they need to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is a task that could be key to keeping your home comfortable through the cooler months in Winnipeg.

Buying a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your utility costs, but it could be a tad daunting 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 obtain the tax credit, you are required to buy a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Kirkfield Heating & Air Conditioning, the experts will help you identify a solution that meets your needs and helps 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll observe when you buy a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And your household will also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you have questions about your eligibility for a tax credit, or if there are other local savings you might be eligible for by getting a new high-efficiency furnace, give our professionals at Kirkfield Heating & Air Conditioning a call at 204-272-8128. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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