Can I Get a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a lengthy list of home improvement to-do’s that they would like to complete or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is a project that might be key to keeping your home comfortable throughout the winter months in Front Royal.

Purchasing a new furnace is a great investment. You’ll definitely recognize the return-on-investment on your indoor comfort as well as your energy costs, but it may be a little overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you might be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to get the tax credit, you must purchase 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 shopping for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Dave's Diversified Services, the experts will help you select an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to clarify that the furnace you select 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 receive when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And your household will also have more confidence in your HVAC system to maintain your indoor space at just the right temp.

If you think of questions concerning your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying a new high-efficiency furnace, give our technicians at Dave's Diversified Services a call at 540-636-3396. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.