Can I Earn a Tax Credit for My New Furnace?

For most families, there typically seems to be a lengthy list of home improvement projects that they want to do or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is a job that could be vital to keeping your home comfortable throughout the cooler months in Greater Richmond.

Selecting a new furnace is a large investment. You’ll certainly notice the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a tad intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you might be qualified 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 are required to purchase 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 browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Herman Allen Plumbing, Heating & Cooling, our team can help you select a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important 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 means 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 purchase a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your utility costs all year long. And your family will also have more confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by getting 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.