Can I Receive Tax Credits for My New Furnace?

For a lot of homeowners, 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 attempt. While some may not be necessary, furnace replacement is one job that might be vital to keeping your home comfortable during the winter months in Los Angeles.

Purchasing a new furnace is a great investment. You’ll certainly 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 buy a new energy-efficient furnace, you may 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 must buy 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 looking for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At AZ Air Conditioning and Heating, we’ll help you choose an option that meets 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 choose 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 purchase a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills 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 concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency furnace, give our professionals at AZ Air Conditioning and Heating a call at 800-296-5088. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.