Can I Earn a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a large list of home improvement tasks that they need to do or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is one project that might be key to keeping your home comfortable through the cooler months in Buellton.

Getting a new furnace is a large investment. You’ll certainly feel the return-on-investment on your indoor comfort as well as your energy bills, but it could be a little intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you may be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to receive the tax credit, you have to select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Allstar Heating & Air Conditioning, the experts will help you determine a solution that matches your needs and ensures 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 indicates 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 purchase a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your utility costs all year long. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right temp.

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