Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For many households, there typically seems to be a large list of home improvement projects that they would like to complete or new ideas they’d like to give a shot. While some may not be required, furnace replacement is a job that might be key to keeping your home comfortable during the colder months in San Jose.

Getting a new furnace is a great investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your utility costs, but it may be a tad intimidating at first. The good news is that when you pick a new energy-efficient furnace, you might 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 receive the tax credit, you are required to 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 browsing for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At American HVAC Inc, our team can help you select a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll find 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 family will also have more confidence in your HVAC system to keep your house at just the right comfort level.

If you think of questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by installing a new high-efficiency furnace, give our teams at American HVAC Inc a call at 408-215-1018. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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