High-Efficiency Furnace Tax Credit & Rebates

There are plenty of ways to trim the cost of purchasing a high-efficiency furnace system for your home. Because state and federal programs are in a near-constant state of flux, it’s advisable to research the most current incentives available in your community.

As 2024 is well underway, Virginia homeowners can claim the following are some of the most advantageous tax credits. Notably, the Inflation Reduction Act offers numerous options for homeowners.

And, now that we are on the verge of spring, it’s a fantastic time to purchase a new furnace, heat pump, air conditioner, or water heater because we’re out of peak winter season, prices are coming down, and our teams are not yet busy with service calls for cooling systems.

Wondering which high-energy solutions are best suited for your needs and desired comfort? Reach out to John Nugent & Sons at 703-291-1926 to speak with our team and discover the systems we recommend for Virginia homes. 

IRA Tax Credit for High-Efficiency Furnaces

Starting January 1, 2023, and running through 2032, eligible purchases allow homeowners to claim the 25C tax credit. Homeowners can claim a credit of up to 30% of the cost of purchasing eligible energy-efficient improvements for their home. This includes up to $2,000 for heat pumps, water heaters, or biomass stoves. For furnaces, the maximum credit that can be claimed is $600.

Eligible furnaces include ENERGY STAR® certified gas furnaces with an AFUE greater than 97%. If you choose an oil furnace, the fuel blend must contain 20% biodiesel or second-generation biofuel.

Virginia Natural Gas Credit for High-Efficiency Furnaces

Virginia Natural Gas customers can claim a $250 rebate toward purchasing and installing an energy-efficient furnace with an AFUE of 90% to 94.9% or a $350 rebate for systems with an AFUE of 95% or greater. The program is available for current customers but only applies to existing structures and is not valid for new construction.

IRA Credit for High-Efficiency Heat Pumps

Homeowners who choose to install a high-efficiency heat pump with a thermal efficiency rating of at least 75% can claim 30% or up to a $2,000 credit for purchasing and installing a qualified heat pump within an existing home.

IRA Credit for High-Efficiency Air Conditioners

Investing in an ENERGY STAR® certified central air conditioner with a minimum SEER 16 qualifies homeowners to claim 30%, or up to a maximum $600 tax credit.

IRA Credit for High-Efficiency Water Heaters

Purchasing an ENERGY STAR® certified gas storage water heater with a minimum UEF of 0.81 for tanks up to 55 gallons and a minimum of 0.86 UEF for tanks 55 gallons or more qualifies homeowners for a credit of 30%, or up to $600 in total credits. Homeowners who opt for tankless gas water heaters can claim the credit if they install an ENERGY STAR® certified unit with a 0.95 UEF.

Smart Thermostat Rebates

Purchasing a smart thermostat is a cost-effective investment that can reduce your annual utility bills by as much as 8%. Homeowners who upgrade their existing thermostat to an eligible ENERGY STAR® certified smart thermostat can claim a rebate of up to $30.

Further, clients of Dominion Energy may also be eligible to earn additional rewards and rebates for participating in the Smart Thermost Rewards Program.

Why Choose Nugent & Sons?

At Nugent & Sons, our family-owned and -operated company has proudly served the needs of homeowners in McLean and throughout Northern Virginia since 1975. We are always ready to provide the helpful recommendations, superior solutions, and expert workmanship you deserve.

Our licensed, bonded, and insured HVAC technicians, electricians, and plumbers will always provide the award-winning home services you expect from our team!

When you are ready to save money and enhance your comfort, contact the specialists at John Nugent & Sons at 703-291-1926 to schedule service for your Northern Virginia home!