Can I Earn a Tax Credit for My New Furnace?

For a lot of homeowners, there typically seems to be a long list of home improvement tasks that they want to complete or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is an example of a task that might be vital to keeping your home comfortable through the colder months in Northridge.

Selecting a new furnace is a big investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a tad overwhelming at first. The good news is that when you pick 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 obtain the tax credit, you are required 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 shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Enertek Air Conditioning & Heating, our team can help you choose a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to clarify that the furnace you choose 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 receive 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 all year long. And your household will also have more confidence in your HVAC system to keep your house at just the right comfort level.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at Enertek Air Conditioning & Heating a call at (818) 727-9993. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.