Have you claimed your geothermal tax credit yet? No? If you’ve installed a geothermal heat pump recently or plan to in the future, you better get on it. The credit won’t last forever.
30% Geothermal Tax Credit for Purchase & Installation
Okay, what are we talking about?
The Energy Improvement and Extension Act of 2008 created a big (30%) tax credit for homeowners who invested in renewable energy appliances. This includes solar panels, wind-energy systems, geothermal heat pumps, and more. Then The American Recovery and Reinvestment Act of 2009 expanded some of those provisions.
There’s a lot in those bills, but the bottom line is pretty straightforward. If you buy and install a new geothermal heat pump, you can claim 30% of that cost on your Federal taxes.
No matter the type of system you install, a 30% geothermal tax credit is a nice big chunk of change.
The Geothermal Tax Credit is Going Away (Soon-ish)
The current tax credit on geothermal heat pumps is due to expire on December 31, 2016. If you buy and install a new ground-source unit on January 1, 2017, you’ve missed the boat. If you wait until 2017 to claim the credit, same thing.
Now is the time to act.
It’s possible the geothermal tax credit will be renewed.
There is consumer and industry pressure on Congress to continue the provisions found in the 2008 law. Unfortunately, the legislation hasn’t made it out of committee yet, so no one knows how it’s all going to pan out. It’s entirely possible the effort will die. The next year and a half might really be the last opportunity to claim the credit.
Of course, it’s not too late. If you’ve thought about installing an energy efficient geothermal heat pump system in your home, you still have plenty of time to do just that.
Do your research, find the best system to fit your needs (we recommend GeoCool!), and make sure to claim your geothermal tax credit before it’s gone (maybe) forever.