Can I Earn a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a long list of home improvement tasks that they want to do or new ideas they’d like to give a shot. While several may not be required, furnace replacement is a job that may be key to keeping your home comfortable throughout the winter months in Pacheco.

Getting a new furnace is a great investment. You’ll definitely recognize the return-on-investment on your indoor comfort as well as your energy bills, but it might be a little daunting at first. The good news is that when you select a new energy-efficient furnace, you might be approved 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 receive the tax credit, you are required to 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 looking for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Clean Air HVAC, our team can help you identify a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate 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 indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity is not going to be the only savings you’ll find when you get a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by installing a new high-efficiency furnace, give our technicians at Clean Air HVAC a call at 925-233-6238. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.