Can I Receive a Tax Credit for My New Furnace?

For most families, there usually seems to be a large list of home improvement to-do’s that they want to complete or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is a project that may be vital to keeping your home comfortable during the winter months in Manassas.

Purchasing a new furnace is a sizeable investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your energy costs, but it might be a bit daunting at first. The good news is that when you buy a new energy-efficient furnace, you might 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 obtain the tax credit, you are required to purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Woody's Sudden Service, we’ll help you determine an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate 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.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you get a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs during the year. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by purchasing a new high-efficiency furnace, give our teams at Woody's Sudden Service a call at 703-278-2036. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.