Reduce your carbon footprint and utility bills at the same time by installing a WaterFurnace geothermal heat pump system. Geothermal systems use the free, renewable energy found in your own back yard to save up to 70% on heating, cooling and hot water costs.
Geothermal energy has been used to heat and air condition buildings for several decades, and, during that time, these geothermal systems have been called many different things. Some of the more popular variations include geo-thermal, geoexchange, ground-water, ground-water assisted, ground-water-source, water-to-water, and even our company name, water furnace heating and cooling.
All of these terms, though, convey the same thought: use of geothermal heat pump technology to tap the energy in the earth’s surface and drive a heating and air conditioning system for both residential and commercial uses. The result is a green or natural heat pump that saves energy and benefits the environment.
Geothermal Tax Credits
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 onetime tax credit of 30% of the total investment for homeowners who install residential ground loop or ground water geothermal heat pumps. A credit of 10% of the total investment is also available (no maximum) for a commercial system installation.
To qualify, the systems must meet or exceed EnergyStar requirements and be installed after December 31, 2007. While units installed in 2008 are subject to a $2,000 cap on the credit, units installed from 2009 through 2016 can take advantage of the full credit. 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 through December 31, 2016. 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.