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Cheat Sheet for Residential Geothermal Tax Incentives

  • 30% tax credit for total system cost
  • Credit limited to $2,000 for 2008 installations
  • NO limit to tax credit amount for 2009 to 2016 installations
  • Can be used to offset AMT tax
  • Can be combined with solar and wind tax credits
  • Can be used in more than one year

Eligibility:

  • Home must be located in the U.S.
  • Includes houses, apartments, condos, mobile homes
  • Does not have to be your primary residence
  • Ground-source Heat Pump (GHP) must meet Energy Star requirements
  • Installed between 1/1/2008 and 12/31/2016

Guide to Federal Tax Incentives for Residential Geothermal Heat Pumps

 
 
Did You Know?

Geothermal systems use the Earth's energy storage capabilities to heat and cool buildings and to provide hot water. The earth is a huge energy storage device that absorbs 47% of the sun's energy - more than 500 times more energy than mankind needs every year - in the form of clean renewable energy. Geothermal systems take this heat during the heating season at an efficiency approaching or exceeding 400%, and return it during the cooling season.

[sources: Geothermal Heat Pump Consortium - Environmental Protection Agency]

 
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Introduction to Geothermal

As a premier provider of geothermal heating and cooling systems, Excel Energy Solutions, LLC designs, builds and installs the highest quality heating and air conditioning systems utilizing geothermal technology.

Geothermal technology (sometimes called ground source heating and cooling or geoexchange) is a simple, well proven, reliable and safe technology that uses the earth's renewable energy to provide high-efficiency heating and cooling. In winter, the system draws heat from the ground and transfers it to your home. In summer, it extracts heat from your home and transfers it to the ground. Hardware consists only of a heat pump connected to a water source such as a well or a series of small-diameter pipes buried underground. Well water or a water-based solution circulating through the pipes carries heat between the ground and the heat pump. The network of pipes can be hidden under your lawn, a garden, even your driveway.

There isn't a single more efficient HVAC technology then geothermal. Oil and gas systems require fuel for heat and a separate air conditioning system for cooling. Geothermal provides both in one system.

No one would ever guess there's a heating and cooling system in your yard. Geothermal technology preserves the natural beauty of your property.

A geothermal system is a smart investment for consumers who want a system that provides a high level of comfort and low monthly energy bills. Geothermal systems are environmentally friendly and are extremely energy efficient representing savings to homeowners of 30 to 70% in the heating mode and 20 to 50% in the cooling mode compared to conventional systems.

Whether you are building a new house or considering a new heating and cooling system for your present one, consider the economical and environmental advantages of geothermal technology.

[sources: Geothermal Heat Pump Consortium - Environmental Protection Agency]

Excel Energy Solutions, LLC 392 McGrath Highway, Somerville, MA 02143 - 888-GEO-HVAC. Providing renewable, sustainable, green, alternative thermal energy systems and solutions for residential and commercial applications. We provide geothermal heating and cooling, solar heating and solar energy and biomass heating. Serving communities throughout Massachusetts, Connecticut, Rhode Island, New Hampshire, Vermont and Maine.

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