For many households, there usually seems to be a lengthy list of home improvement projects that they would like to complete or new ideas they’d like to give a shot. While several may not be required, furnace replacement is an example of a job that might be vital to keeping your home comfortable during the cooler months in Mission Viejo.

Getting a new furnace is a sizeable investment. You’ll certainly recognize the return-on-investment on your indoor comfort as well as your energy bills, but it could be a little overwhelming at first. The good news is that when you buy 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 get the tax credit, you must 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 looking for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At 1st Choice Heating & Air Conditioning, the experts will help you identify an option that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy costs during the year. And your family will also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by purchasing a new high-efficiency furnace, give our experts at 1st Choice Heating & Air Conditioning a call at 949-204-0859. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.