Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many households, there typically seems to be a large 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 might be vital to keeping your home comfortable through the colder months in Derby.

Buying a new furnace is a big investment. You’ll absolutely recognize the return-on-investment on your indoor comfort as well as your utility costs, but it could be a tad intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you could be qualified 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 have to 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 researching furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Giordanos Heating and Air Conditioning, we’ll help you determine a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 won’t be the only savings you’ll observe when you select 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 you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you could be eligible for by buying a new high-efficiency furnace, give our technicians at Giordanos Heating and Air Conditioning a call at 203-734-7648. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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