Can I Earn a Tax Credit for My New Furnace?

For most homeowners, there typically seems to be a long list of home improvement projects that they need to do or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is an example of a job that may be key to keeping your home comfortable during the winter months in Northglenn.

Getting a new furnace is a big investment. You’ll certainly realize the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a bit intimidating at first. The good news is that when you shop for 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 extended through December 31, 2020. In order to get the tax credit, you must buy a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Northglenn Heating & Air Conditioning, the experts will help you choose a solution that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you select 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.

This tax credit won’t be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs throughout the year. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by purchasing a new high-efficiency furnace, give our professionals at Northglenn Heating & Air Conditioning a call at 303-452-4146. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.