A $2000 tax credit for a home geothermal system makes it far and away the most cost-effective ultra-high efficiency heating and cooling system available.
An exciting new tax credit is now available for home and commercial building owners who install geothermal heating and cooling systems through the Energy Improvement and Extension Act of 2008 (H.R. 1424). H.R. 1424 offers a one time tax credit of 30% of the total investment (maximum of $2,000 for a single residence) for all residential ground loop or ground water geothermal heat pump installations. A credit of 10% of the total investment is also available (no maximum) for a commercial system installation.
To qualify, the systems must meet or exceed EnergyStar requirements and be installed after December 31, 2007. Owners can file for the credit by completing the Renewable Energy Credits subsection on their tax return forms for 2008. For taxpayers that are subject to the Alternative Minimum Tax, they can claim the credit on their taxes for the following year. No proof of purchase will be required; however, in case of an audit, owners are encouraged to keep a detailed invoice of their purchase on file. The contractor who sold and installed the product should list the purchase as a "Geothermal Heat Pump" on the invoice and that it "Exceeds requirements of Energy Star program currently in effect".
The tax credit is available from October 3, 2008 through December 31, 2016. For more information, visit http://thomas.loc.gov or contact your local tax professional.
Visit http://www.dsireusa.org/ to find additional tax incentives that may be available in your state.
An exciting new tax credit is now available for home and commercial building owners who install geothermal heating and cooling systems through the Energy Improvement and Extension Act of 2008 (H.R. 1424). H.R. 1424 offers a one time tax credit of 30% of the total investment (maximum of $2,000 for a single residence) for all residential ground loop or ground water geothermal heat pump installations. A credit of 10% of the total investment is also available (no maximum) for a commercial system installation.
To qualify, the systems must meet or exceed EnergyStar requirements and be installed after December 31, 2007. Owners can file for the credit by completing the Renewable Energy Credits subsection on their tax return forms for 2008. For taxpayers that are subject to the Alternative Minimum Tax, they can claim the credit on their taxes for the following year. No proof of purchase will be required; however, in case of an audit, owners are encouraged to keep a detailed invoice of their purchase on file. The contractor who sold and installed the product should list the purchase as a "Geothermal Heat Pump" on the invoice and that it "Exceeds requirements of Energy Star program currently in effect".
The tax credit is available from October 3, 2008 through December 31, 2016. For more information, visit http://thomas.loc.gov or contact your local tax professional.
Visit http://www.dsireusa.org/ to find additional tax incentives that may be available in your state.
