Can I Earn a Tax Credit for My New Furnace?

For most homeowners, there typically seems to be a lengthy list of home improvement to-do’s that they need to complete or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is one job that could be key to keeping your home comfortable during the winter months in Lake Forest.

Getting a new furnace is a large investment. You’ll definitely feel the return-on-investment on your indoor comfort as well as your energy costs, but it may be a little overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you might be qualified 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 have to select 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 researching furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At 1st Choice Heating & Air Conditioning, our team can help you find a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you select 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.

Taking advantage of this opportunity will not be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs during the year. And your family will also have more confidence in your HVAC system to help your home stay at just the right temp.

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