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Can I earn a tax credit for my new furnace?

April 08, 2020

For a lot of homeowners, there usually seems to be a large list of home improvement projects that they need to get done or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is an example of a job that could be key to keeping your home comfortable through the winter months in the Bay Area.

Buying a new furnace is a big investment. You’ll absolutely see the return-on-investment on your indoor comfort along with your energy bills, but it might be a little daunting at first. The good news is that when you shop for 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 obtain 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 looking for furnace replacements, watch for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Contra Costa Heating & AC, our team can help you determine an option that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 means 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 get a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

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