You might not dread April 15 anymore when you decide to make the investment and purchase a geothermal heating and air conditioning system. Your efforts to lower your impact on the environment won’t go unnoticed.
The American Recovery and Reinvestment Act of 2009 was signed into law on February 16, 2009 by U.S. President Barack Obama, paving the way for heating, air conditioning and indoor air quality customers to receive additional tax credits, including geothermal tax credits. These credits apply to the installation fees of qualifying high-efficiency products and home efficiency improvements.
The Energy Policy Act of 2005 included a $300 tax credit for homeowners who installed geothermal heat pumps. EESA makes new $2,000 geothermal tax credits for people who install a geothermal heat pump – not subject to the $500 cap established for the products referenced above. EESA also qualifies geothermal heat pumps for a $6,667 geothermal tax credit when used on a jointly occupied dwelling unit, condominium, or for owners of cooperative housing. Additionally, the geothermal tax credits can be used to offset any Alternative Minimum Tax liability.
This tax credit is retroactive for 2008 and will continue through 2016!
- Geothermal heat pump ($2,000) must meet ENERGY STAR® requirements in effect at the time that the costs for such equipment are made – the credit amount is 30% of the entire expenditure, capped at $2,000.
Service Experts Heating & Air Conditioning is available to answer your questions. And remember, we’re experts in the heating and cooling industry, not tax advisers, so please be sure to check with a qualified CPA to make sure which programs are available to you.
Give us a call at 866-397-3787 for additional information.