Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most homeowners, there usually seems to be a long list of home improvement projects that they would like to do or new ideas they’d like to give a shot. While several may not be required, furnace replacement is a task that could be vital to keeping your home comfortable through the winter months in Bishop.

Getting a new furnace is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your energy costs, but it could be a little overwhelming at first. The good news is that when you pick 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 get the tax credit, you have to purchase 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 shopping for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Bishop Heating & Air Conditioning, we’ll help you identify a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to confirm the furnace you choose 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.

This tax credit is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy costs during the year. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you think of questions concerning your eligibility for a tax credit, or if there are additional local savings you could be eligible for by buying a new high-efficiency furnace, give our experts at Bishop Heating & Air Conditioning a call at 760-784-9034. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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