Can I Get a Tax Credit for My New Furnace?

For many homeowners, there typically seems to be a lengthy list of home improvement to-do’s that they need to complete or new ideas they’d like to attempt. While several may not be required, furnace replacement is an example of a project that may be vital to keeping your home comfortable during the winter months in Manassas.

Getting a new furnace is a large investment. You’ll certainly see the return-on-investment on your indoor comfort along with your energy costs, but it could be a bit daunting at first. The good news is that when you shop for a new energy-efficient furnace, you may be qualified 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 receive the tax credit, you have to buy 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 picking a high-efficiency furnace.

At Fire & Ice HVAC, the experts will help you determine a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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.

This tax credit will not be the only savings you’ll observe when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your utility costs during the year. And your family will also have more confidence in your HVAC system to keep your house at just the right temp.

If you have questions concerning 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 professionals at Fire & Ice HVAC a call at 703-595-4157. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.