Can I Receive Tax Credits for My New Furnace?

For most homeowners, there always seems to be a lengthy list of home improvement to-do’s that they need to do or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is an example of a project that may be vital to keeping your home comfortable during the cooler months in The Bay Area.

Buying a new furnace is a great investment. You’ll absolutely recognize the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a bit intimidating at first. The good news is that when you select a new energy-efficient furnace, you could be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to get the tax credit, you have 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 browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Contra Costa Heating & AC, 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’ll need to check the furnace you pick 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 is not going to be the only savings you’ll find when you get a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your utility costs during the year. And you’ll also have more confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you could be eligible for by installing a new high-efficiency furnace, give our teams at Contra Costa Heating & AC a call at 510-343-9841. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.