Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many families, there typically seems to be a large list of home improvement tasks that they want to complete or new ideas they’d like to try. While some 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 Manassas Park.

Selecting a new furnace is a large investment. You’ll certainly realize the return-on-investment on your indoor comfort along with your utility costs, but it could be a little intimidating at first. The good news is that when you pick 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 prolonged through December 31, 2020. In order to obtain the tax credit, you must select a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When researching furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Woody's Sudden Service Inc, we’ll help you identify an option that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to confirm the furnace you select 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.

Taking advantage of this opportunity is not going to be the only savings you’ll find when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And your household will also have more confidence in your HVAC system to keep your house at just the right comfort level.

If you have 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 professionals at Woody's Sudden Service Inc a call at 703-278-2036. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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