Can I Get a Tax Credit for My New Furnace?

For many families, there typically seems to be a lengthy list of home improvement projects that they want to complete or new ideas they’d like to give a shot. While several may not be required, furnace replacement is one task that might be critical to keeping your home comfortable through the winter months in Brookfield.

Purchasing a new furnace is a big investment. You’ll absolutely recognize the return-on-investment on your indoor comfort as well as your energy costs, but it might be a tad daunting at first. The good news is that when you buy a new energy-efficient furnace, you could be eligible 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 obtain the tax credit, you are required to purchase 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 researching furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Central Air LLC, we’ll help you identify a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to confirm the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll receive when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy costs all year long. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temp.

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