Can I Get a Tax Credit for My New Furnace?

For a lot of families, there always seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to attempt. While some may not be necessities, furnace replacement is an example of a job that could be key to keeping your home comfortable throughout the winter months in Pacheco.

Selecting a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a bit daunting at first. The good news is that when you buy a new energy-efficient furnace, you could be qualified 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 have 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Clean Air HVAC, the experts will help you find a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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.

This tax credit is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. A lot of the most efficient solutions 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 keep your house at just the right temperature.

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 buying a new high-efficiency furnace, give our teams at Clean Air HVAC a call at 925-233-6238. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.