Did you know the geothermal tax credits are back?! We are so excited. Here is the breakdown and the important dates you need to know if you are considering geothermal for your home or business.
Geothermal Heat Pumps
30% for systems placed in service by 12/31/2019
26% for systems placed in service after 12/31/2019 and before 01/01/2021
22% for systems placed in service after 12/31/2020 and before 01/01/2022
There is no maximum credit for systems placed in service after 2008.
Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2021.
The geothermal heat pump must meet federal Energy Star criteria. The home served by the system does not have to be the taxpayer’s principal residence.
Geothermal heat pumps are one of the most efficient ways to heat and cool a home and provide hot water. More and more homeowners are discovering the benefits of these systems, which tap the relatively constant temperature of the Earth a few feet underground, for both new homes and retrofits in existing houses.
A Geothermal Heat Pump uses the same type of compressed refrigeration system to remove heat from the building, but it transfers the heat into the temperate earth and not into hot air. Because it is easier to move heat to the cooler earth than into the sweltering summer air, Geothermal Heat Pumps do not have to work as hard to cool your home. This efficiency has a bottom line - substantial savings reflected in your monthly utility bill.