Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most families, there always seems to be a large list of home improvement tasks that they need to complete or new ideas they’d like to attempt. While some may not be necessities, furnace replacement is one task that might be key to keeping your home comfortable through the winter months in Winnipeg.

Getting a new furnace is a large investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your energy bills, but it could be a tad intimidating at first. The good news is that when you select a new energy-efficient furnace, you might 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 purchase 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 looking for furnace replacements, look for products 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 choose a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate 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 means 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. Some of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And you’ll also have more confidence in your HVAC system to help your home stay 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 may 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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