Geothermal Tax Credits and Incentives
As part of the payback analysis provided by ThermLink all eligible federal, state, and local incentives are included.
In addition, the process for completing the forms is explained.
30% U.S. Federal Tax Credit
To encourage the installation of geothermal systems the federal government offers a 30% tax credit to all homeowners that install a geothermal heat pump before December 31, 2016. There is no maximum limit and the credit applies to the material and labor to install the entire system including the geothermal heat pump, ground loops, heat distribution system, electrical and system controls. This credit also applies to a home that is not the taxpayer's principal residence.
The taxpayer should save their receipts and the Manufacturer's Certification Statement for their records and submit IRS Form 5695 'Residential Energy Credits' with their taxes. The tax credit is recorded on Line 52 on IRS Form 1040.
State and Local Incentives
Most states also offer incentives in the form of tax savings or special financing options. In addition, there are rebates offered by many local utilities.
The DSIRE website provided by the U.S. Department of Energy is a great resource to determine if you qualify for state, local, utility and federal incentives for installing a geothermal system.
Desciption from IRS
Qualified geothermal heat pump property costs. Qualified geothermal heat pump property costs are costs for qualified geothermal heat pump property installed on or in connection with your home located in the United States. Qualified geothermal heat pump property is any equipment that uses the ground or ground water as a thermal energy source to heat your home or as a thermal energy sink to cool your home. To qualify for the credit, the geothermal heat pump property must meet the requirements of the Energy Star program that are in effect at the time of purchase. The home does not have to be your main home.
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