Geothermal Tax Credits Can Make This Type of HVAC System More Affordable
When it comes time to replace an old furnace, air conditioner or HVAC system, what do you consider when deciding what unit to buy? If you are like most, you will think of the initial cost of the unit and what a technician is going to charge to install it. You may look at the Energy Star rating on an appliance in order to do your part to conserve the environment and save money in order to pay for the system over time. But, what about tax credits or rebates? How can using the available tax credits help you be able to afford that new heating and cooling unit?
A geothermal heat pump uses the stable temperature of the earth below the frost line to heat your home in winter and cool your home in summer. This exchange uses far less energy than conventional systems. Homeowners who install a geothermal heat pump can apply for a personal tax credit (not a deduction) of 30 percent of qualified expenses with no maximum limit as long as the house is used as a residence.
The Residential Renewable Energy Tax Credit was extended by the Energy Improvement and Extension Act of 2008.
- There is no maximum credit for geothermal heat pumps put into service after 2008.
- The heat pump must be put into service on or after January 1, 2008 but on or before December 31, 2016.
- The unit must meet federal Energy Star criteria.
- The home can be a second residence. In addition to this federal tax credit, there are also state and local incentives you may qualify for that can make your new system even more affordable.
Check with your local utility company to see if they offer any rebates. Don’t forget to investigate incentives your state may be offering for installing a geothermal heat pump. Consider a geothermal heat pump for the savings and the environment.
Our goal is to help educate our customers in Delaware, Pennsylvania, Maryland and New Jersey about energy and home comfort issues (specific to HVAC & plumbing systems). Contact Sobieski Services to learn more.
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