Can I Get Tax Credits for My New Furnace?

For many families, there usually seems to be a long list of home improvement to-do’s that they would like to do or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is an example of a project that could be critical to keeping your home comfortable during the winter months in Northridge.

Getting a new furnace is a big investment. You’ll absolutely recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a bit overwhelming 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 pushed through December 31, 2020. In order to receive the tax credit, you have to purchase 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 browsing for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Enertek Air Conditioning & Heating, we’ll help you choose an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you pick 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.

This tax credit will not 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 energy bills all year long. And your household will also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you may be eligible for by installing a new high-efficiency furnace, give our professionals at Enertek Air Conditioning & Heating a call at (818) 727-9993. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.