Did you miss out on the 2010 federal energy efficiency tax credits? Thankfully, there are plenty more opportunities to take advantage of tax credits that expire in 2011 or later. Geothermal heat pumps are one of the technologies that are included, and the best part is, there is no limit to the amount of the tax credit for this type of heating and cooling equipment!
Geothermal heat pumps are more energy efficient than natural gas, air-source heat pumps, fuel oil, and electric systems. They are so efficient, you can save up to 60 percent on monthly utility bills compared to conventional heating and cooling systems. With little to no emissions, they also help reduce your home’s carbon footprint. They are also safer because there is no flame or combustible fuel, improving indoor air quality and keeping your family healthier.
What exactly is included in the federal tax credit for geothermal heat pumps?
- 30 percent of the total cost of equipment and installation can be claimed, with no upper limit.
- Every one of the Energy Star geothermal heat pumps qualifies, giving you the flexibility to select the model that works best for your home.
- Whether you are building a new home, or installing a geothermal heat pump in an existing home, you can claim the credit.
- Both primary residences and second homes are eligible; however, rental properties do not apply.
- This particular tax credit does not expire until the end of 2016.
Even though you have a few years to take advantage of this tax credit, there is no reason to wait so long. The money you will save on utility bills will more than make up for the cost of equipment and installation, especially after the tax credit is taken into consideration. This equipment typically lasts longer than conventional systems, so you will get even more from your investment. And with fewer moving parts, necessary repairs are far less frequent.
Detmer & Sons is the leading heating and air conditioning service provider in Dayton, and installation and maintenance of geothermal heat pumps is no exception. Contact us today for a free home-payback analysis.
Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems). For more information, click here to download our free Home Comfort Resource guide.