Can I Get Tax Credits for My New Furnace?

For many households, there always seems to be a lengthy list of home improvement tasks that they need to get done or new ideas they’d like to attempt. While some may not be required, furnace replacement is one task that might be key to keeping your home comfortable through the winter months in Santa Clarita.

Selecting a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a tad overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you could be approved 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 purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Verona HVAC, our team can help you determine an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to confirm the furnace you pick 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.

Qualifying for the tax credit won’t be the only savings you’ll observe when you buy a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your utility costs during the year. And your household will also have more confidence in your HVAC system to keep your house at just the right comfort level.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by getting a new high-efficiency furnace, give our technicians at Verona HVAC a call at 818-306-3387. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.