Can I receive a tax credit for my new furnace?

April 08, 2020

For most families, there always seems to be a lengthy list of home improvement to-do’s that they need to complete or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is an example of a task that could be vital to keeping your home comfortable during the colder months in Brookfield.

Selecting a new furnace is a great investment. You’ll certainly notice the return-on-investment on your indoor comfort along with your utility costs, but it might be a little intimidating at first. The good news is that when you pick a new energy-efficient furnace, you may be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to get the tax credit, you have to select 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, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Central Air LLC, we’ll help you identify an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to confirm the furnace you pick 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.

Qualifying for the tax credit will not be the only savings you’ll observe when you purchase a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills during the year. And your family will also have more confidence in your HVAC system to keep your house at just the right temp.

If you think of 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 teams at Central Air LLC a call at 203-357-5913. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.