Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most families, there usually seems to be a large list of home improvement to-do’s that they need to do or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is an example of a project that might be key to keeping your home comfortable throughout the winter months in Pacheco.

Getting a new furnace is a large investment. You’ll certainly realize the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a little overwhelming at first. The good news is that when you buy 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 extended through December 31, 2020. In order to get the tax credit, you are required to buy a furnace that has earned the ENERGY STAR label. However, it can’t 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 certain you’re selecting a high-efficiency furnace.

At Clean Air HVAC, we’ll help you determine an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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.

Taking advantage of this opportunity will not be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And your family will also have more confidence in your HVAC system to help your home stay 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 buying a new high-efficiency furnace, give our technicians at Clean Air HVAC a call at 925-233-6238. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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