Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For a lot of families, there typically seems to be a large list of home improvement projects that they would like to complete or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is an example of a project that might be critical to keeping your home comfortable through the cooler months in Manassas Park.

Selecting a new furnace is a sizeable investment. You’ll definitely realize the return-on-investment on your indoor comfort along with your utility costs, but it could be a little daunting at first. The good news is that when you pick a new energy-efficient furnace, you might be qualified 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 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 choosing a high-efficiency furnace.

At Woody's Sudden Service Inc, we’ll help you identify a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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.

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

If you think of questions concerning your eligibility for a tax credit, or if there are additional local savings you might 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 organization if you have questions about other eligible home products.

Back To Blog