Can I Receive a Tax Credit for My New Furnace?

For most households, there usually seems to be a long list of home improvement to-do’s that they need to do or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is an example of a task that might be critical to keeping your home comfortable through the winter months in Derby.

Purchasing a new furnace is a sizeable investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a little intimidating at first. The good news is that when you pick 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 prolonged through December 31, 2020. In order to get the tax credit, you must purchase 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 looking for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Giordanos Heating and Air Conditioning, we’ll help you select an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to confirm the furnace you pick 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.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you purchase a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy bills during the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right comfort level.

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