The Government of British Columbia offers exemption from provincial tax from February 16, 2005 to April 1, 2007 for qualifying residential furnaces, boilers and heat pumps.

For the period from February 16, 2005 to April 1, 2007, qualifying energy efficient residential furnaces, boilers and heat pumps are exempt from social service tax (PST) if purchased or leased for residential purposes.

What Qualifies?

Gas-fired forced air furnaces, boilers, air-source heat pumps and ground-source heat pumps qualify for exemption from PST if, at the time of purchase or lease, they are listed as "ENERGY STAR Qualified" by the Office of Energy Efficiency, Natural Resources Canada, and are acquired for a residential purpose. A listing of the furnaces, boilers and heat pumps that are ENERGY STAR qualified may be found on the ENERGY STAR web site. The model listings provide information on the brand names and model numbers for qualifying items.

In addition to the ENERGY STAR qualified heating equipment outlined above, oil-fired forced-air furnaces that have a Seasonal Energy Utilization Efficiency (SEUE) rating of at least 85%, and are acquired for a residential purpose, also qualify for exemption from PST. The SEUE rating is established under the federal government's Energy Efficiency Act.

The exemption applies to all parts of the residential furnace, boiler or heat pump, as supplied by the manufacturer or system installer. For heat pumps, the exemption includes all major components, including piping, refrigerant solutions circulated within closed-loop heat pump systems, heat pump thermostats, and the heat pump itself (for example, evaporator,compressor, condenser, coils, heat exchanger, valves, fans, blowers).

A furnace, boiler or heat pump is considered to be acquired for a residential purpose if it is installed in a residential dwelling. Residential dwellings include both single family homes and multiple family dwellings, such as apartment buildings and extended care facilities.

The exemption does not include heating distribution systems such as duct work used to circulate air in a house, generic thermostats, or supplementary heating systems that are not integral to a heat pump system.

For more information visit the Consumer Taxation Branch Web site under February 2005.