Can I Earn a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a long list of home improvement tasks that they want to get done or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is one project that may be vital to keeping your home comfortable throughout the cooler months in Fredericksburg.

Getting a new furnace is a great investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your utility costs, but it might be a bit daunting 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 prolonged through December 31, 2020. In order to get the tax credit, you have to select 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 browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Childress Heating & AC, our team can help you determine a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll receive when you get a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills during the year. And your household will also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

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