Unless you’re up in the nearby mountains, Los Angeles doesn’t experience snowstorms. Despite the lack of snow, winters can feel freezing. Heating systems like furnaces help provide warmth in the coldest of days. Plenty of homes can benefit from a furnace, and homeowners seeking a new furnace can save money through available rebates and tax credits.
At Monkey Wrench Plumbing, Heating & Air, we are always on the lookout for special incentives available for all our products, from tankless water heaters to heating, ventilation, and air conditioning systems. Most homeowners may not be aware of these money-saving opportunities, so we share this information whenever possible.
Homeowners who purchase a new furnace for their home may qualify for the following rebates and tax credits.
- SoCalGas Home Energy Efficiency Rebate Program
- Federal tax credit for furnaces
We’ll review each available incentive and explain what they are so homeowners can find out if they qualify as well as how they can apply.
Ready to learn about savings? Let’s jump in!
What Rebates Are Available in Los Angeles for Gas Furnaces?
Rebates and tax credits are available for homeowners in Los Angeles and the surrounding areas looking to purchase a new furnace. These incentives are available at local and federal levels to encourage homeowners to choose more environmentally friendly fixtures for their houses.
Older furnace systems aren’t as efficient as newer units, so these rebates offer homeowners a chance to upgrade any outdated furnace. The first rebate is available with SoCalGas.
SoCalGas Home Energy Efficiency Rebate Program
Southern California Gas Company has a Home Energy Efficiency Program available for residential customers. To qualify, homeowners must include a copy of their SoCalGas bill in their application. Here’s a list of other requirements homeowners must meet to qualify for the SoCalGas rebate program for furnaces.
- Completed 2024 Home Energy Efficiency Rebate Program Application
- Proof of purchase: The invoice should include the contractor or retailer’s name, address, and phone number. It should also have the furnace manufacturer, make, and model number. The proof of purchase must also have the furnace price and installation date.
- Furnaces must be purchased and installed between January 1 and December 31, 2024.
- Copy of proof of permit closure in accordance with California Public Utilities Code section 399.4(b).
This rebate doesn’t apply to all furnaces, however. Before filling out an application, homeowners must ensure they’re purchasing a furnace with Energy Star certification and have higher than a 92% annual fuel utilization efficiency (AFUE) rating. These furnaces are certified as energy-efficient.
Homeowners will also need to know the furnace’s British Thermal Units per hour (BTU/h) to calculate how much money they qualify for. Manufacturers provide this information with every furnace. After gathering all this necessary information, homeowners can begin the application process.
How to Apply for SoCal Gas Rebate for Furnace?
Applications for the SoCalGas rebate for furnaces can be submitted online or by mailing in their application, plus the required documentation. The application has a page that breaks down the tier list of available rebate prices.
- Tier 1: Furnaces with 92% to 94% AFUE get $1.15 per kBtuh
- Tier 2: Furnaces with 95% to 96% AFUE get $4.60 per kBtuh
- Tier 3: Furnaces with 97% or above AFUE get $14 per kBtuh
For example, if a homeowner purchased a Goodman furnace with a 97% AFUE rating, they’re eligible to receive up to $1,358 from the SoCalGas rebate. Calculating how much a homeowner can earn through rebates can be tricky. Fortunately, manufacturers like Goodman include up-to-date information on how much is available through rebates for every one of their furnaces.
After submitting an application, homeowners will have to wait six to eight weeks for review. If there are any errors or issues with the application, SoCalGas notifies applicants via email. If approved, the payment may be issued through a digital or physical Prepaid Mastercard.
The SoCalGas rebate offers the most money for a new furnace. Still, the federal tax credit for furnaces can provide homeowners with extra cash.
Federal Tax Credits for Furnaces
Homeowners purchasing an energy-efficient furnace may qualify for a federal tax credit. During tax season, applicants can submit a form to receive a tax credit for 30% of the furnace cost with a maximum amount of $600 credited.
The federal tax credit is only for furnaces with an AFUE rating above 97% offered through the Energy Efficient Home Improvement Credit program. Qualifying furnaces must be purchased and installed between January 1, 2023 to December 31, 2032.
If the homeowner meets the federal tax credit for furnace requirements, they can proceed to apply for it.
How to Apply for Federal Tax Credit for Furnace
Qualifying applicants can claim the federal tax credit for furnaces by submitting Form 5695 for Residential Energy Credits with their taxes. The form has instructions for filling it out, but homeowners can seek assistance from a certified tax preparer on Form 5695. It is recommended to work with a tax professional to ensure there aren’t any errors with the application form.
Taking Advantage of Available Rebates for Furnaces
Purchasing a new home fixture, such as a furnace, can be a big investment. Luckily, homeowners can take advantage of rebates and tax credits that offer savings for these types of investments. Homeowners looking to buy energy-efficient furnaces know about local rebates through SoCalGas and federal tax credits. These available savings can entice homeowners to seek out a new furnace.
Since 2007, we’ve helped homeowners take advantage of special savings through rebates and tax credits for various fixtures, including furnaces. Homeowners may not be aware of these offers, so at Monkey Wrench Plumbing, Heating & Air, we do our best to share these savings with homeowners across Los Angeles and the surrounding areas.
If you’re interested in a new furnace or have questions about rebates, contact us using one of the following buttons. You can also book an appointment with a certified HVAC technician through our HVAC online scheduler.
Before applying for a rebate, homeowners should get an idea of what a furnace can cost. Check out this video that breaks down the factors affecting the final price of a new furnace.
