Can I Receive a Tax Credit for My New Furnace?

For a lot of families, there typically seems to be a large list of home improvement projects that they need to get done or new ideas they’d like to try. While some may not be necessities, furnace replacement is one task that may be critical to keeping your home comfortable throughout the cooler months in Brookfield.

Getting a new furnace is a great investment. You’ll absolutely 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 pick 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 pushed 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 browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Central Air LLC, our team can help you choose a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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 indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll observe when you buy a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And you’ll also have greater 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 other local savings you could be eligible for by installing a new high-efficiency furnace, give our technicians at Central Air LLC a call at 203-357-5913. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.