Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For many households, there usually seems to be a large list of home improvement tasks that they need to get done or new ideas they’d like to try. 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 as well as your utility costs, 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 purchase 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 shopping for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Contra Costa Heating & AC, we’ll help you determine a solution 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 represents 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. Many of the most efficient solutions can save you hundreds of dollars on your utility costs 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 might be eligible for by purchasing 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.

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