Can I Get Tax Credits for My New Furnace?

For a lot of households, there usually seems to be a long list of home improvement to-do’s that they need to complete or new ideas they’d like to attempt. While several may not be required, furnace replacement is one job that could be key to keeping your home comfortable through the colder months in Derby.

Purchasing a new furnace is a big investment. You’ll certainly feel the return-on-investment on your indoor comfort as well as your energy bills, but it may be a bit daunting at first. The good news is that when you select 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 extended through December 31, 2020. In order to get the tax credit, you must buy 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Giordanos Heating and Air Conditioning, the experts will help you choose a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to clarify that 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 is not going to be the only savings you’ll observe when you purchase a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have greater confidence in your HVAC system to keep your house at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you may be eligible for by buying a new high-efficiency furnace, give our technicians at Giordanos Heating and Air Conditioning a call at 203-772-8319. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.