Can I Earn a Tax Credit for My New Furnace?

For many homeowners, there usually seems to be a long list of home improvement projects that they need to complete or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is an example of a job that might be key to keeping your home comfortable during the winter months in Winnipeg.

Selecting a new furnace is a big investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your energy costs, but it may be a little intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you might be qualified 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 receive the tax credit, you must purchase 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 researching furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Kirkfield Heating & Air Conditioning, the experts will help you find a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to confirm the furnace you select 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.

Taking advantage of this opportunity will not be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy costs throughout the year. And your family will also have more confidence in your HVAC system to maintain your indoor space 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 could be eligible for by getting a new high-efficiency furnace, give our teams at Kirkfield Heating & Air Conditioning a call at 204-272-8128. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.