Can I Earn a Tax Credit for My New Furnace?

For most homeowners, there typically seems to be a long list of home improvement projects that they want to get done or new ideas they’d like to try. While several may not be necessities, furnace replacement is one task that may be key to keeping your home comfortable through the cooler months in Brookfield.

Purchasing a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your utility costs, but it might be a bit daunting at first. The good news is that when you pick a new energy-efficient furnace, you might be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended through December 31, 2020. In order to obtain the tax credit, you are required 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, look for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Central Air LLC, we’ll help you determine a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to clarify that 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.

This tax credit is not going to be the only savings you’ll find when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs throughout the year. And your family will also have greater confidence in your HVAC system to keep your house at just the right temp.

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