30% U.S. Tax Credit
Guide to U.S. Residential Geothermal System Tax Incentives
In addition to the extensive benefits offered by a geothermal heating and cooling system, there are also numerous financial incentives being offered across North America.
The most prolific incentive is available throughout the United States. The American Recovery and Reinvestment Act adopted in October 2008 allows for a 30% tax credit for costs associated with ENERGY STAR qualified geothermal heat pumps. The credit is in place through December 31, 2016.ARRA Certificate 2010 Tax Credit Certificate 2011 Tax Credit Certificate 2012 Tax Credit Certificate 2013 Tax Credit Certificate Official 2009 IRS Tax Credit Form Residential Federal Tax Incentives TY2011
- Any geothermal equipment that meets ENERGY STAR requirements at the time of installation is eligible for the federal tax credit.
- The geothermal system must be installed in the United States in the taxpayer's home... primary residency is not required.
- The credit is equal to 30% of the total system cost (equipment, installation, piping, electrical, etc.)
- There is no limit on the number of credits that can be claimed per taxpayer.
- There is no cap to the tax credit.
Canadian provinces also offer tax incentives for Canadian residents installing a geothermal system. Since these offerings vary by Province, interested parties should contact their local Hydron Module dealer for details regarding their specific tax incentive availability.
In addition to the federal/Provincial tax credits, many local municipalities and utilities also offer rebates or other financial incentives to homeowner's installing a geothermal system. Be sure to research their availability to ensure maximal benefit of installing a new efficient geothermal heating and cooling system. A few great resources for this research can be found below.
DSIRE is a comprehensive source of information on state, local, utility, and federal incentives and policies that promote renewable energy and energy efficiency. Established in 1995 and funded by the U.S. Department of Energy, DSIRE is an ongoing project of the N.C. Solar Center and the Interstate Renewable Energy Council. Click this link to visit the site.