Not only can you save money on your heating and cooling bills, install the Geothermal System for little or no cost, reduce your carbon footprints but you will also be eligible for a 30% tax credit!

Residential Geothermal Tax Incentives

• 30% credit against Federal Income Taxes of total geothermal system cost
• No limit to credit amount
• System must be placed into service from January 1, 2009 and on or before December 31, 2016
• Credit can be used to offset AMT tax
• Can be combined with solar and wind tax credits
• Credit can be used in more than one year and carried forward until December 31, 2016
• The geothermal heat pump must meet Federal Energy Star program requirements.

Eligibility:

• Home must be located in the U.S.
• Includes houses, apartments, condos, mobile homes
• Does not have to be your main home
• Geothermal heat pump must meet Energy Star requirements
• Installed between 1/1/2008 and 12/31/2016

Legislation History

• Energy Improvement and Extension Act of 2008 included 30 % tax credit to residential geothermal heat pump systems installations through December 31, 2016 with maximum credit of $2,000.
• The American Recovery and Reinvestment Act of 2009 removed maximum credit amount for systems placed in service after January 1, 2009.

Web Site: www.energystar.gov/taxcredits

IRS Form 5695 & Instructions: Residential Energy Credits