OPM - Replacement Furnace Rebate Program

Summary

Connecticut enacted legislation (HB 7432) in June 2007 creating a Replacement Furnace Rebate Program to encourage Connecticut residents to replace furnaces or boilers with more efficient models. Tax rebates of up to $500 are available for natural gas furnaces and boilers that meet or exceed federal Energy Star standards, and for propane and oil furnaces and boilers that are at least 84% efficient. The amount of the rebate decreases with income. For taxpayers who file as unmarried individuals, the rebate baseline income varies by year. In income year 2007, the rebate is reduced from $500 by 10% for each $10,000 the taxpayer's adjusted gross income exceeds $55,500. The baseline increases to $56,500 in 2008, $58,500 in 2009, $60,500 in 2010, $62,500 in 2011, and $64,500 in 2012 and thereafter. There is a separate reduction factor and baseline income for married couples who file their taxes jointly. Previous law authorized the issuance of up to $5 million in bonds for low-interest energy efficiency loans. HB 7432 of 2007 authorized the issuance of up to $ 5 million in bonds per year, and allows the proceeds to be used for the rebate program as well as for the loan program.