Can I Get a Tax Credit for My New Furnace?

For most households, there typically seems to be a large list of home improvement projects that they would like to complete or new ideas they’d like to try. While some may not be necessary, furnace replacement is one job that could be critical to keeping your home comfortable during the cooler months in The Bay Area.

Getting a new furnace is a large investment. You’ll definitely see the return-on-investment on your indoor comfort along with your utility costs, but it could be a bit overwhelming at first. The good news is that when you shop for 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 obtain the tax credit, you must select a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Contra Costa Heating & AC, our team can help you identify an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to clarify that 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.

This tax credit is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And your family will also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by purchasing a new high-efficiency furnace, give our professionals 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.