Expanded Tax Incentive Encourages Installation Of Geothermal Heating and Cooling Systems
Homeowners who install geothermal heating cooling systems are eligible for increased tax incentives under the American Recovery and Reinvestments Bill of 2009. Previous legislation offered a one-time tax credit of 30 percent of the total investment for residential ground loop or ground water geothermal heat pump installations, with a maximum credit of $2,000 for a single residence. The new bill, signed into law on Tuesday, removes the $2,000 cap and offers homeowners the entire 30 percent tax credit.
The American Recovery and Reinvestments Bill of 2009 offers a one-time tax credit of 30 per cent of the total investment, with no cap or limit, for residential ground loop or ground water geothermal heat pump installations. The new tax credits are retroactive to January 1, 2009, and expire on December 31, 2016.
To qualify for the tax credit, residential systems must meet Energy Star requirements. Owners can file for the credit by completing the Renewable Energy Credits subsection on their 2009 tax return forms. No proof of purchase is required. However, in case of an audit, owners are encouraged to keep a detailed invoice of their purchase on file.
FACTOID:
The ground absorbs 47% of the sun's energy that reaches planet Earth. This amount of energy represents 500 times more than mankind needs every year.