Can I Get a Tax Credit for My New Furnace?

For a lot of households, there always seems to be a long list of home improvement tasks that they would like to do or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is one project that may be key to keeping your home comfortable during the colder months in Mission Viejo.

Purchasing a new furnace is a great investment. You’ll definitely recognize the return-on-investment on your indoor comfort as well as your energy bills, but it could be a tad intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you may be eligible 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 must 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, watch for products with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At 1st Choice Heating & Air Conditioning, the experts will help you determine a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to clarify that the furnace you select 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 is not going to be the only savings you’ll find when you select a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And your family will also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you think of questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by purchasing a new high-efficiency furnace, give our technicians 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.