Federal Tax Credit for Energy Efficiency on GeoThermal Heat Pump
Posted by Norman F
GeoThermal Heat Pumps are devices which transfer the heat from the Earth and utilize it to warm your house in a energy efficient manner.
A reminder that there is a Federal Tax Credit for Energy Efficiency on Qualifying GeoThermal Heat Pumps, with no cap. If you have been thinking about replacing these items, you might as well upgrade now and save some money.
For 2012, the Federal Tax Credit for energy efficiency for GeoThermal heat pumps is 30% of the cost (including installation/labor costs), with no upper limit . (2010 Federal Tax Credit information)
- Existing home and principal residence. New construction and rentals do not qualify.
- Units must be placed into service by December 31, 2016.
Geo-thermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. Because they use the Earth’s natural constant heat, they are among the most efficient and comfortable heating and cooling technologies currently available. This allows the system to reach fairly high efficiencies (300%-600%) on the coldest of winter nights, compared to 175%-250% for air-source heat pumps on cool days.
Units can cost from $5,000 to $10,000 installed and take about 5-10 years for payback.
All ENERGY STAR geo-thermal heat pumps qualify for the tax credit.
Criteria for heat pumps:
· Closed Loop: >=17.1 EER; >=3.6 COP
· Open Loop: >=21.1 EER; >=4.1 COP
· Closed Loop: >=16.1 EER; >=3.1 COP
· Open Loop: >=20.1 EER; >=3.5 COP
· Direct Geoexchange (DGX): >=16 EER; >= 3.6 COP
Energy Star has a store location finder to help you find local dealers.
The 2011 tax credit reverted to 2005-2008 levels. Anyone who previously took advantage of the program can’t apply for incentives that exceed $500. IE If you claimed $500 between 2005 – 2008 on a previous energy efficiency project, or at least $500 tax credit from 2009 – 2010, you are ineligible for the 2011 energy efficiency tax credit.
If you used say $200 of the $500 energy efficiency tax credit from 2005 – 2008, and did not utilize the 2009 – 2010 energy efficiency tax credit, you would still have a $300 credit available.
Filed under: Alternative Energy, Conservation, Eco Friendly, Effort, Energy, Environment, Green, Hard, Home, Money, Pollution, Reduce, Sustainability | Tags: Federal Tax Credit, Federal Tax Credit for Energy Efficiency, Geo-Thermal Heat Pump
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