Can I Earn a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to try. While some may not be necessities, furnace replacement is one task that could be key to keeping your home comfortable during the colder months in Highlands Ranch.

Getting a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort along with your energy bills, but it could be a bit overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you could be approved 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 must select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At PS Cool Heat, the experts will help you determine an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm the furnace you select has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE means the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs all year long. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are further local savings you could be eligible for by buying a new high-efficiency furnace, give our technicians at PS Cool Heat a call at 720-613-2210. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.