Can I Receive Tax Credits for My New Furnace?

For most families, there usually seems to be a lengthy list of home improvement projects that they want to get done or new ideas they’d like to try. While several may not be required, furnace replacement is an example of a task that might be vital to keeping your home comfortable during the winter months in Bishop.

Purchasing a new furnace is a big investment. You’ll absolutely recognize the return-on-investment on your indoor comfort along with your utility costs, but it may be a bit overwhelming at first. The good news is that when you select 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 are required to buy 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 solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Bishop Heating & Air Conditioning, the experts will help you select a product that meets your needs and ensures 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll observe when you purchase a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy bills all year long. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by getting a new high-efficiency furnace, give our professionals at Bishop Heating & Air Conditioning a call at 760-784-9034. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.