For many families, there always seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is one job that could be key to keeping your home comfortable throughout the cooler months in Greater Richmond.
Buying a new furnace is a large investment. You’ll certainly notice the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a bit intimidating at first. The good news is that when you buy 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 must 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 researching furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.
At Herman Allen Plumbing, Heating & Cooling, our team can help you select an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm the furnace you pick 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 will not be the only savings you’ll receive when you purchase a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your utility costs throughout the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.
If you have questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by buying a new high-efficiency furnace, give our teams at Herman Allen Plumbing, Heating & Cooling a call at 804-302-6657. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.