Geothermal Heat Pump Federal Tax Credit
The Residential Energy-Efficient Property Credit is a 30% tax credit for the installation of a ground source heat pump (geothermal system) and is available through 2016. To qualify for a tax credit, the geothermal heat pump credit can be claimed on units placed in service during the period of 2008 and 2016. There is no limit on the amount of the tax credit that can be claimed.
The tax credit is valid for both material & labor associated with the geothermal installation. That means you receive 30% off the entire project cost, not just the equipment cost. IRS Form 5695 is used to claim the Residential Energy Efficient Property Credit.
Highlights of Federal Income Tax Credit:
- Tax credit equal to 30% of total geothermal system cost
- No limit to the maximum credit amount for 2009 and beyond
- Can be used to offset AMT tax
- Can be used in more than one year
- Can be combined with solar and wind tax credits
- Can be combined with energy efficiency upgrade credits
- Use IRS Form 5695 to claim energy credit
- Home must be located in the U.S
- Does not have to be primary residence
- Includes houses, condos, apartments, mobile homes
- Geothermal heat pump must be energy star qualified
- Installed between 1/1/2008 and 12/31/2016
We look forward to helping you save money on your heat pump installation and are here to walk you through any questions you have about the federal tax credit. If you don’t find the information you are looking for here, Just ask! At Geothermal Professionals our experts are available to help you every step of the way.