Can I Earn Tax Credits for My New Furnace?

For most families, there always seems to be a long 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 necessary, furnace replacement is a job that may be key to keeping your home comfortable during the winter months in Greater Richmond.

Selecting a new furnace is a big investment. You’ll certainly notice the return-on-investment on your indoor comfort along with your utility costs, but it might be a little daunting at first. The good news is that when you shop for a new energy-efficient furnace, you could be eligible 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 purchase 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 browsing for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Herman Allen Plumbing, Heating & Cooling, our team can help you select an option that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to check 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.

Taking advantage of this opportunity won’t be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you have questions concerning your eligibility for a tax credit, or if there are additional local savings you might be eligible for by installing 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 company if you have questions about other eligible home products.