For most households, there usually seems to be a large list of home improvement tasks that they need to do or new ideas they’d like to give a shot. While some may not be required, furnace replacement is a task that may be key to keeping your home comfortable through the cooler months in Greater Richmond.

Getting a new furnace is a sizeable investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a little overwhelming at first. The good news is that when you buy 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 extended through December 31, 2020. In order to get the tax credit, you have to 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 shopping for furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Herman Allen Plumbing, Heating & Cooling, our team can help you select a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate 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 means the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll observe when you select 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 you’ll also have more 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 additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at Herman Allen Plumbing, Heating & Cooling a call at 804-302-6657. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.