For most families, there typically seems to be a long list of home improvement to-do’s that they need to complete or new ideas they’d like to try. While some may not be necessary, furnace replacement is a task that might be key to keeping your home comfortable throughout the winter months in Sacramento.
Buying a new furnace is a great investment. You’ll absolutely recognize the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a bit intimidating at first. The good news is that when you pick a new energy-efficient furnace, you could 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 obtain 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, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.
At American HVAC Inc, we’ll help you choose an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need 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.
Qualifying for the tax credit will not be the only savings you’ll find when you buy a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills during the year. And you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.
If you come across questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by installing a new high-efficiency furnace, give our experts at American HVAC Inc a call at 916-243-6714. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.