Yes, you heard right! The 30% geothermal federal tax credit for installation of a system does not end until December 31, 2016.
The Emergency Economic Stabilization Act of 2008, signed into law October 3, 2008 created a tax credit for the installation of a geothermal heat pump system in new or existing homes. The American Recovery and Reinvestment Act of 2009 expanded this credit by removing a $2000 cap for qualified installations placed into service beginning January 1, 2009.
Be sure to take advantage of this credit when installing your geothermal system. It’s easy to claim. Just use IRS Form 5695 when you file your taxes.
Form 5695 is also used for claiming residential energy credits for other home improvements like insulation, exterior windows and doors, and roofing.
With a full 30% tax credit, there’s no better time than now to check out the benefits of geothermal heating and cooling for your home.
