Can I Earn a Tax Credit for My New Furnace?

For many homeowners, there always seems to be a large list of home improvement tasks that they need to complete or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is a job that could be key to keeping your home comfortable throughout the winter months in Fredericksburg.

Selecting a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort as well as your energy costs, but it could be a tad overwhelming at first. The good news is that when you pick 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 prolonged through December 31, 2020. In order to get the tax credit, you must buy 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Childress Heating & AC, the experts will help you find an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products signify 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 indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll receive when you buy a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your utility costs during the year. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by installing a new high-efficiency furnace, give our teams at Childress Heating & AC a call at 540-675-4306. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.