In the last several years, there has been a lot of talk regarding tax credits for installing energy efficient HVAC systems in your Cincinnati home. These credits give homeowners an incentive for installing qualifying equipment in the form of a credit which directly reduces their tax liability.
Geothermal heating and cooling systems were initially covered by the Energy Policy Act of 2005, and the credits were extended through 2016 when the Energy Improvement Extension Act of 2008 was passed. As of December 31, 2016, this credit will expire unless an extension is passed. Currently, there has been no indication from the Internal Revenue Service that this credit will be extended, meaning if your geothermal system isn’t installed by the end of the year, you could miss out on thousands in savings.
This year is the right time to have a geothermal heating and cooling system installed in your Cincinnati home – as long as your system meets the qualifications and installation is completed, you may be eligible for a tax credit worth 30 percent of your installation costs. There is no cap for the maximum credit amount, unlike tax credits for installing efficient furnaces and other HVAC systems.
Geothermal heat pumps must meet ENERGY STAR standards for the tax credit at the time of installation. The credit amount can include the cost of equipment as well as installation.
Homeowners building a new home this year may take advantage of the credit, as well as those in existing homes. Your home is eligible if it is your primary residence or your second home; you cannot claim the geothermal tax credit for rental properties.
While geothermal heating and cooling is an investment, the tax credit for qualifying systems is a great way to make these efficient systems more affordable for Cincinnati homeowners. Be sure to consult your tax professional to make sure you meet the program qualifications. We will help you select a heat pump which qualifies per program guidelines.
Ready to go geothermal in your Cincinnati home? Call Nelson Comfort for expert design and installation of new geothermal heating and cooling systems.