Can I Get a Tax Credit for My New Furnace?

For many families, there typically seems to be a lengthy list of home improvement to-do’s that they want to get done or new ideas they’d like to try. While some may not be necessities, furnace replacement is an example of a task that may be critical to keeping your home comfortable throughout the colder months in Derby.

Buying a new furnace is a big investment. You’ll definitely recognize the return-on-investment on your indoor comfort as well as your utility costs, but it may be a bit intimidating at first. The good news is that when you select a new energy-efficient furnace, you may 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 receive the tax credit, you must select 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, watch for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Giordanos Heating and Air Conditioning, we’ll help you find a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to check 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.

This tax credit is not going to be the only savings you’ll find when you select a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy costs during the year. And your household will also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you may 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 can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.