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Geothermal Tax Credits

trane geothermal

Redeeming Tax Credit for Geothermal Heating

HVAC customers have an opportunity to save money and energy through federal tax credits. The Energy Improvement and Extension Act of 2008 (HR 1424) offers homeowners and commercial building owners a tax credit percentage of their investment in geothermal heating and cooling systems.

Homeowners can receive a tax credit of 30% the total cost of installing residential ground loop or ground water geothermal heat pumps. Commercial Building Owners can receive a tax credit of 10% the total cost of commercial geothermal system installation with no maximum limit.

It is recommended to consult with your local tax professional for the details and to take advantage of this federal credit offered by the United States Internal Revenue Service. There is not maximum credit for systems placed after 2008. However, units must be installed by December 31, 2016 to qualify.Visit the IRS Notice of Credit for Residentail Energy Efficent Property bulletin and the Energy.Gov Residental Renewal Energy Tax Credit Program page for more information.

Why Geothermal Heating and Cooling Systems?

Geothermal energy systems are considered the world’s greenest heating and cooling unit. Choosing this option will be the most efficient, cost effective, and environmentally friendly according to studies by the Environmental Protection Agency and The United States National Renewable Energy Laboratory. Federal, state, local, and utility incentives such as this tax credit offer additional savings. Check out the many benefits of Geothermal technology below:

Money Savings During Operation

Geothermal units can deliver five units of energy for every one unit of electrical energy used. This amazing and efficient ratio saves homeowners up to 70% the cost of traditional heating and cooling systems.

Better Precision and Greater Comfort

Geothermal systems offer more precise distribution of heat and air than traditional systems for greater comfort in the home environment. Homeowners will not experience hot blasts common with gas furnaces or the cold spots associated with air source heat pumps.

Noise Control

There is no need to worry about noisy outdoor units when you have a geothermal system unlike with air conditioners and traditional heat pumps. Geothermal units are designed with the goal of quiet operation.

Stronger Stability

Geothermal systems are installed indoors and are not vulnerable to damage caused by outdoor elements such as rain, snow, ice, extreme temperatures, flying debris, and vandalism. In addition, these require less maintenance than traditional air conditioners and heat pumps.

Greener Energy

The Department of Energy and the EPA reports that geothermal systems are the greenest option for heating and cooling. This type of unit does not contribute to air pollution because it emits zero amounts of carbon dioxide, carbon monoxide, and other greenhouse gases.

Qualifying Geothermal Systems in Berks County

Geothermal heating and cooling systems must meet or exceed the EnergyStar requirements in order to qualify. Units installed between 2009 and December 31, 2016 are eligible for the full credit. B&L Ott HVAC is proud to offer heating and cooling products that provide high efficiency and great energy savings. Nearly all of our geothermal systems meet or exceed the EnergyStar requirements needed to take advantage of the tax credit.

For homeowners in the Berks County area, B&L Ott is available to provide and install geothermal heat pumps that exceed the requirements of the EnergyStar program currently in effect and meet your personal heating and cooling needs. Our certified technicians will provide excellent service and a detailed invoice of your purchase for tax purposes. Inform the technician during your free consultation that you want to qualify for the credit and our staff will recommend appropriate products that also meet your home’s unique heating and cooling needs. This offer is only available through 2016, so we recommend you don’t wait to take advantage of this incredible opportunity. Contact B&L Ott to schedule service and a free consultation.