Time is running out to earn the geothermal tax credit.
What’s black and white and saves you 30% on a geothermal heat pump? The Energy Policy Act of 2005. That piece of legislation put into effect a federal tax credit for residential energy-efficiency upgrades like solar-water heating systems, fuel cells, and wind-energy systems. In 2008, it was updated to include geothermal heating and cooling systems.
And very soon, it disappears.
Gone. Done. Arrivederci.
We tell you all this, of course, so that you’ll take advantage of the tax credit while you still can. We sweeten the deal even further, of course, with some pretty sweet rebates. (Ours aren’t going anywhere, by the way, but we’d hate for you to leave money on the table.)
If you’ve considered a geothermal heating and cooling system, you’re probably already in the know about what makes them great. But time is running out. Your deadline is December 31, 2016, and if you haven’t installed your system by then you won’t get the tax credit. It’s that simple, and that urgent.
Here are some more important points about the credit:
- There is no maximum credit for systems installed after 2008.
- The geothermal heat pump must meet federal ENERGY STAR® criteria.
- The home served by the system does not have to be the taxpayer’s principal residence.
Okay . . . go.
Or perhaps you’ve stumbled onto this post by accident and need some very good reasons why you’d undertake a big home heating and cooling project right there where you live. We have those. For instance, a geothermal system is four times as efficient as a standard gas furnace. It enables you to heat and cool your home with one system that requires minimal maintenance and uses a lot less energy—as much as $200 less per year.
A geothermal heat pump works with your present ductwork and can be installed in almost any yard. But we can’t argue that it is a rather big undertaking. So please do keep the December 31, 2016 deadline in mind as you consider the pros and cons. If you’re new to geothermal, our video gives you an introduction to its hows and whys.