Can I Get a Tax Credit for My New Furnace?

For a lot of households, there always seems to be a lengthy list of home improvement tasks that they would like to get done or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is a job that could be key to keeping your home comfortable through the winter months in Buellton.

Buying a new furnace is a sizeable investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your energy bills, but it might be a little overwhelming at first. The good news is that when you pick 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 have 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, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Allstar Heating & Air Conditioning, we’ll help you select a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you choose 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.

Qualifying for the tax credit will not be the only savings you’ll find when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs during the year. And your household will also have greater confidence in your HVAC system to help your home stay at just the right comfort level.

If you think of questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by getting a new high-efficiency furnace, give our experts at Allstar Heating & Air Conditioning a call at 805-242-9638. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.