Can I Earn a Tax Credit for My New Furnace?

For most households, there always seems to be a large list of home improvement tasks that they need to get done or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is a job that might be vital to keeping your home comfortable during the winter months in Tucson.

Selecting a new furnace is a great investment. You’ll certainly feel the return-on-investment on your indoor comfort along with 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 might 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 purchase 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Ambient Air, we’ll help you find a product that meets your needs and makes sure 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 means the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity will not be the only savings you’ll observe when you select a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by installing a new high-efficiency furnace, give our teams at Ambient Air a call at 520-357-4912. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.