Can I Get a Tax Credit for My New Furnace?

For a lot of families, there usually seems to be a long list of home improvement tasks that they want to complete or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is a job that could be key to keeping your home comfortable through the winter months in Manassas.

Purchasing a new furnace is a great investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a bit overwhelming at first. The good news is that when you purchase 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. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When researching furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Woody's Sudden Service, our team can help you determine a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate 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.

Qualifying for the tax credit is not going to be the only savings you’ll find when you purchase a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs all year long. And your family will also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by installing 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 establishment if you have questions about other eligible home products.