Can I Earn a Tax Credit for My New Furnace?

For a lot of households, 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 try. While a handful may not be necessities, furnace replacement is one project that may be vital to keeping your home comfortable throughout the winter months in Manassas.

Selecting a new furnace is a large investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a bit intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you could be eligible 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 get the tax credit, you are required to 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 shopping for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Air-Right Energy Design, the experts will 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 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 won’t be the only savings you’ll observe 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 you’ll also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by installing a new high-efficiency furnace, give our professionals at Air-Right Energy Design a call at 703-260-1148. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.