A modified tax credit is now available for home and commercial building owners who install geothermal heating and cooling systems. Anyone who has an old HVAC system should absolutely take this option to put in geothermal (Don't forget insulation at the same time). If you have a younger system, you should give some serious consideration to geothermal especially if your system is configured for R401.
The feds, under H.R. 1424, offers a one time tax credit of 30% of the total investment for all residential ground loop or ground water geothermal heat pump systems installed in 2009. Credits differ for commercial. It seems you can also apply the credit to properties other than just your primary residence. Some key requirements include:
- The systems must meet or exceed EnergyStar requirements
- Must be installed after December 31, 2007
- Units installed in 2008 are subject to a $2,000 cap on the credit
- Make sure your contractor provides a detailed bill listing "Geothermal Heat Pump that Exceeds requirements of Energy Star".
The tax credit is available through December 31, 2016. Talk to your account though. Other resources include:
- IRS Form 5695*: Residential Energy Efficient Property Credit
- More Information about the "Residential Renewable Energy Tax Credit"
- Find additional tax incentives that may be available in your state - www.dsireusa.org
