The High-Efficiency Furnace Tax Credit in California: What Every Homeowner Should Know

Have you ever had your friends recommend something to you so often that you eventually started to just tune them out? I bet you’re nodding right now, because, hey, we’ve all been there. I think for some homeowners this has actually become the case—at least a little bit—with home energy efficiency upgrades, and, listen, I get it. In our area, there are just so many different financing options to choose from that you may eventually start to tune all these conversations out. But, I’m here to urge you to reconsider, especially when it comes to your furnace.

You see, we’re eligible for a high-efficiency furnace tax credit here in California. It really behooves you as a cost-conscious and responsible homeowner to learn all that you can about it. Here are some of the simplest and most important thing that you need to know about the high-efficiency furnace tax credit in California, including the most common high energy furnace tax credit program, which furnace models qualify, and—I think most importantly—how a trained HVAC company is a vital partner in getting this all sorted out and your furnace upgraded.

Let’s face it, here in the Sacramento area our furnaces are important. We may be famous throughout the state for our super hot summers, but that’s only half the story. The winter brings us cold, wet weather, so we need our furnaces to help us stay comfortable. That’s why I highly recommend sticking with me today as I discuss the high-efficiency furnace tax credits available in California.

The Most Common High-Efficiency Furnace Tax Credit Programs in California

We’ve talked a lot in the past about things like energy efficiency financing programs—but that’s a slightly different thing. The high-efficiency furnace tax credit in California doesn’t help you with the cost of investing in a new more efficient furnace, but it does incentivize you via a tax break once you’ve done it.

The easiest way to get a high-efficiency furnace tax credit in California is to purchase a high-efficiency HVAC or heater in order to qualify for the Energy Upgrade California Home Upgrade program, which offers you between $1,000 and $6,500 back for taking a whole-house approach to energy efficiency.

We often get caught up in discussing the financing programs, but the truth is that there are more energy efficiency incentives than just those. I don’t know about you, but getting between $1,000 and $6,500 back is pretty appealing to me. Add that to the money you save by using less energy to heat your home, and now you’re really talking big savings.

Which Furnace Models Qualify for High-Efficiency Tax Credits in California?

It is, of course, also important to ensure that you’re investing in a furnace that makes you eligible for a high-efficiency furnace tax credit in California. Obviously, they don’t just give these incentives out to any random homeowner who buys a new furnace.

I recommend working with a qualified HVAC professional (more on that in the next section) to ensure that you not only get an eligible model, but one that will be the right size and fit for your home. In the meantime, however, here are two general options for replacing an old furnace with a higher efficiency model that qualifies for a California furnace tax credit:

• Energy Star-labeled furnaces: Any new furnace that has an Energy Star label on it has an AFUE of .90 or higher, qualifying it for a California furnace tax credit. These furnaces use energy more efficiently, which also gives you immediate savings on your heating bills. And, furnaces in this 90% efficiency range have sealed combustion chambers that pose fewer safety risks related to carbon monoxide and flame rollout. Basically, it’s a win-win-win scenario.
• Heat pumps: An alternate route in a temperate area like ours is investing in an electric heat pump. I’ve talked in the past about heat pumps versus gas furnaces and why they’re a good fit for Northern California but, basically, electric heat pumps draw heat from outside air and move it into your home. The right models will also have Energy Star labels, making them easy to identify.

High-Efficiency Furnace Tax Credit in California: Working with an Experienced Contractor

I don’t think there’s any such thing as a simple tax credit. Things like financing, taxes, and incentives can really be tricky business, especially if you don’t have experience navigating them. Fortunately for you, there are professionals to help, and I’m not talking about tax accounts. When it comes to ensuring that you get the most out of your high-efficiency furnace tax credit in California, I’d suggest working with a trained local HVAC contractor.

When it comes to ensuring that you get the most out of your high-efficiency furnace tax credit in California, I’d suggest working with a trained local HVAC contractor.

The reason you want to make sure that you work with a contractor is because they not only have experience helping homeowners find eligible furnaces, but they can also find the exact right fit for individual homes. On top of all that, contractors can schedule the work and get the installation taken care of. Basically, with the right contractor on your side, you can rest assured that the most difficult and tricky parts of getting a new furnace are handled and handled well.

So, there you have it. Now you know enough about the high-efficiency furnace tax credit in California, enough to figure out how you want to proceed. As I suggested above, ideally you’ll find an expert local contractor who can lend you all the help you need with these matters. Tax credits can be tricky, but they won’t feel that way with help from the right contractor.

I, of course, recommend giving us a call here at Bell Brothers. We’re local to the Sacramento area, and we’ve been working with homeowners here for many years. We know the ins and outs of everything from furnace installation to local financing programs to the tax credits you’re eligible for. Give us a call, and let us take care of the tricky stuff so you can enjoy a comfortably-heated home this winter season!

Contact the HVAC professionals at Bell Brothers to schedule a whole-house assessment for energy efficiency. We’ll offer recommendations and upgrades that are sure to increase your year-round comfort—and decrease your power bills.

Wondering how to finance a new HVAC system, windows, or plumbing? HERO is a unique financing option that helps California homeowners afford energy efficient upgrades to their home. Contact Bell Brothers, a HERO-approved contractor, to learn more. Our local HVAC, plumbing, and window specialists will walk you through the entire process, from applications to installation.

Image courtesy Unsplash user sarandy westfall