Can I Get Tax Credits for My New Furnace?

For many households, there usually seems to be a lengthy list of home improvement tasks that they would like to do or new ideas they’d like to try. While several may not be required, furnace replacement is one job that may be critical to keeping your home comfortable during the colder months in Richmond.

Getting a new furnace is a sizeable investment. You’ll definitely realize the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a tad intimidating at first. The good news is that when you select a new energy-efficient furnace, you might be eligible 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 select 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 looking for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Refrigeration Systems Ltd., the experts will help you find a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to clarify that the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll observe when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And your household will also have more confidence in your HVAC system to keep your house 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 may be eligible for by buying a new high-efficiency furnace, give our professionals at Refrigeration Systems Ltd. a call at 778-693-2532. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.