Can I Earn a Tax Credit for My New Furnace?

For many families, there always seems to be a lengthy list of home improvement tasks that they need to complete or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is an example of a job that could be critical to keeping your home comfortable through the winter months in Northglenn.

Purchasing a new furnace is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your utility costs, but it could be a tad overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you might be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to get the tax credit, you have to select 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 researching furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Northglenn Heating & Air Conditioning, we’ll help you select a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm the furnace you choose 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.

Taking advantage of this opportunity is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And your family will also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you could be eligible for by getting a new high-efficiency furnace, give our technicians at Northglenn Heating & Air Conditioning a call at 303-452-4146. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.