Can I Earn a Tax Credit for My New Furnace?

For most households, there typically seems to be a long list of home improvement tasks that they need to do or new ideas they’d like to try. While some may not be required, furnace replacement is an example of a task that may be critical to keeping your home comfortable through the colder months in Manassas.

Purchasing a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort along with your utility costs, but it could be a bit daunting 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 extended through December 31, 2020. In order to receive the tax credit, you have to 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 shopping for furnace replacements, look for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Air-Right Energy Design, the experts will help you identify an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you select 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 won’t be the only savings you’ll observe when you select a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And your household will also have greater confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by getting a new high-efficiency furnace, give our technicians at Air-Right Energy Design a call at 703-260-1148. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.