Can I Receive Tax Credits for My New Furnace?

For most households, there usually seems to be a long list of home improvement to-do’s that they want to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is one task that could be key to keeping your home comfortable through the cooler months in Front Royal.

Selecting a new furnace is a big investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your energy costs, but it may be a little daunting at first. The good news is that when you purchase 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 prolonged through December 31, 2020. In order to obtain the tax credit, you have 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 researching furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Dave's Diversified Services, our team can help you determine an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy bills 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 come across questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by installing a new high-efficiency furnace, give our teams at Dave's Diversified Services a call at 540-636-3396. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.