Geothermal Tax Credits

Tax credits are available at 30% of the cost, with no upper limit through
2016 (for existing homes & new construction) for Geo-Thermal Heat Pumps.

Same criteria as ENERGY STAR:

Closed Loop:
EER >= 14.1
COP >= 3.3

Open Loop:
EER >= 16.2
COP >= 3.6

Direct Expansion:
EER >= 15
COP >= 3.5

To qualify, the systems must meet or exceed EnergyStar requirements and be installed after December 31, 2007. Owners can file for the credit by completing the Renewable Energy Credits subsection on their tax return forms for 2008. For taxpayers that are subject to the Alternative Minimum Tax, they can claim the credit on their taxes for the following year. No proof of purchase will be required; however, in case of an audit, owners are encouraged to keep a detailed invoice of their purchase on file. The contractor who sold and installed the product should list the purchase as a "Geothermal Heat Pump" on the invoice and that it "Exceeds requirements of Energy Star program currently in effect".

The tax credit is available from October 3, 2008 through December 31, 2016. For more information, visit thomas.loc.gov or contact your local tax professional.

Visit www.dsireusa.org to find additional tax incentives that may be available in your state.