Can I Get Tax Credits for My New Furnace?

For most homeowners, there always 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 one task that may be key to keeping your home comfortable throughout the colder months in Fredericksburg.

Buying a new furnace is a great investment. You’ll definitely see the return-on-investment on your indoor comfort as well as your utility costs, but it could be a little daunting at first. The good news is that when you select a new energy-efficient furnace, you might 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 receive the tax credit, you must buy 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 browsing for furnace replacements, watch for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Childress Heating & AC, the experts will help you identify a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you choose 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.

Qualifying for the tax credit will not be the only savings you’ll observe when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills throughout the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are further local savings you may be eligible for by purchasing a new high-efficiency furnace, give our teams at Childress Heating & AC a call at 540-675-4306. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.