Can I Receive Tax Credits for My New Furnace?

For many families, there usually seems to be a large list of home improvement to-do’s that they would like to do or new ideas they’d like to try. While some may not be necessities, furnace replacement is an example of a job that could be vital to keeping your home comfortable through the cooler months in Buellton.

Selecting a new furnace is a sizeable investment. You’ll absolutely notice the return-on-investment on your indoor comfort as well as your energy costs, but it might be a tad intimidating at first. The good news is that when you pick 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. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Allstar Heating & Air Conditioning, we’ll help you select an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to clarify that the furnace you pick 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 observe when you purchase a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right comfort level.

If you think of questions regarding 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 Allstar Heating & Air Conditioning a call at 805-242-9638. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.