Can I Receive a Tax Credit for My New Furnace?

For most families, there usually seems to be a long list of home improvement tasks that they would like to get done or new ideas they’d like to try. While several may not be necessities, furnace replacement is a project that could be critical to keeping your home comfortable through the colder months in Brookfield.

Selecting a new furnace is a large investment. You’ll definitely realize the return-on-investment on your indoor comfort as well as your utility costs, but it may be a tad overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you may 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 obtain the tax credit, you have to purchase 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Central Air LLC, we’ll help you choose a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to clarify that the furnace you choose 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 buy 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 comfort level.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you may be eligible for by getting a new high-efficiency furnace, give our professionals at Central Air LLC a call at 203-357-5913. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.