30% Residential Tax Credit

Click Here to download a compliance certificate from WaterFurnace for your tax records

Click Here for a Free Downloadable Brochure for Understanding the Federal Tax Incentives for Residential Geothermal Heat Pumps

The Solar Energy Industries Association (SEIA) has published a three-page document that provides answers to frequently asked questions regarding the federal tax credits for solar energy.

An exciting new tax credit is now available for home and commercial building owners who install geothermal heating and cooling systems through the Energy Improvement and Extension Act of 2008 (H.R. 1424). H.R. 1424 offers a one time tax credit of 30% of the total investment for all residential Solar, ground loop or ground water geothermal heat pump installations. A credit of 10% of the total investment is also available for a commercial system installation.

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. Follow this link for more information. Consult your local tax professional for advice on taking advantage of the tax credit, as this announcement is not intended as a recommendation or endorsement of any financial strategy.

For more information about the benefits of a geothermal heating and cooling system, click here or call us at 717-464-0111.