Use Your Tax Credits and Install Geothermal Cooling and Heating
Unlike other kinds of high efficiency HVAC equipment, federal tax credits are still active for geothermal heat pumps. The credit is in place to encourage homeowners to install these systems because of their low carbon footprint, high efficiency and unparalleled durability. The tax credit for qualifying geothermal system that homeowners can claim covers nearly the entire cost of the system and its installation to receive the 30 percent credit. The credit does not cover the ductwork installation or the emergency heating coil found in heat pumps.
The credit is good until the end of 2016. The geothermal system must qualify for the Energy Star label to be eligible for the credit, based on the program requirements at the time the system is installed. Aside from the ductwork and heating coil exclusion, there is no limit on the cost you can claim. Eligible homes include primary and vacation homes, as well as new construction. The tax credits do not cover rental properties, however. Heat pumps function by moving heat from one place to another. A geothermal system does so more efficiently than the more common air-source heat pump because it uses underground resources for thermal transfer.
In the summer, the geothermal system deposits the excess heat from your home and in the winter, the pump extracts the heat. Temperatures underground vary little throughout the year, so the system isn’t dealing with temperature extremes, either high or low. These systems have a long lifetime since none of the parts have outdoor exposure. The loop field typically carries a 50-year warranty and the indoor components have a lifetime around 25 years, as long as they’re properly maintained. These systems pay for themselves over time, through a longer lifetime and reduced energy spending. The tax credit puts a geothermal system into easier reach for many homeowners.
To learn more about the suitability of a geothermal system for your home and using the tax credits, contact the pros at Sobieski Services, Inc. We’ve provided trusted HVAC services for the homeowners in Maryland, New Jersey, Delaware and Pennsylvania for more than 25 years.
Photo Credit: kenteegardin via Compfight cc
