Can I Get a Tax Credit for My New Furnace?

For most households, there always seems to be a long list of home improvement to-do’s that they want to get done or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is one job that could be key to keeping your home comfortable through the cooler months in The Bay Area.

Selecting a new furnace is a great investment. You’ll absolutely realize the return-on-investment on your indoor comfort along with your energy costs, but it could be a little overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you might be eligible 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 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 researching furnace replacements, watch for solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Contra Costa Heating & AC, our team can help you determine a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll observe when you purchase a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills during the year. And your household will also have greater confidence in your HVAC system to keep your house at just the right temp.

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