Can I Earn a Tax Credit for My New Furnace?

For most families, there typically seems to be a long list of home improvement projects that they would like to complete or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is an example of a task that may be critical to keeping your home comfortable throughout the winter months in Manassas.

Purchasing a new furnace is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your energy costs, but it might be a bit intimidating at first. The good news is that when you select a new energy-efficient furnace, you could be approved 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. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Woody's Sudden Service, the experts will help you choose a product 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 choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates 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. A lot of the most efficient products can save you hundreds of dollars on your utility costs during the year. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you could 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 organization if you have questions about other eligible home products.