Can I Get Tax Credits for My New Furnace?

For most households, there usually seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is a task that could be key to keeping your home comfortable during the colder months in Bishop.

Selecting a new furnace is a large investment. You’ll absolutely see the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a little daunting 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 prolonged through December 31, 2020. In order to receive the tax credit, you have to select 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 shopping for furnace replacements, watch for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Bishop Heating & Air Conditioning, the experts will help you find a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check 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.

Taking advantage of this opportunity is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your utility costs during the year. And your household will also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you might be eligible for by buying 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 establishment if you have questions about other eligible home products.