Technology That Pays For Itself

Geothermal energy savings
You already purchased your property – why not utilize the readily available energy source just below the surface of your yard? Geothermal systems can broadcast an astounding five units of energy for every one unit of electrical energy used.

Still not convinced? How does a 70% savings on heating and cooling for your home sound? We install geothermal products that make use of that free, clean energy lying in your backyard. That free energy allows you to condition your home for far less than your neighbors who are using standard heating and cooling means. You can even heat your water for free during the summer. You simply cannot beat geothermal when it comes to saving money on energy.

Geothermal tax credits

Increased Savings With Tax Credits

As you can see, geothermal systems provide dramatic reductions to the cost of providing hot water, heating, and cooling for your home. In fact, geothermal is so energy efficient that an exciting new tax credit is now available for home and commercial building owners who install geothermal heating and cooling systems.

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 Energy Star 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.

Download the brochure: Understanding the Federal Tax Incentives
Personal Income Tax Form: Residential Energy Credits (IRS Form 5695)
Compliance Certificate:
- WaterFurnace units that qualify for the tax credit
- American Recovery and Reinvestment Act “Buy American” Provisions

Helpful Resources
- Internal Revenue Code – 26 USC §25D – Residential energy efficient property
- IRS Notice – Notice 2009-41: Credit for Residential Energy Efficient Property
- More information about the “Residential Renewable Energy Tax Credit”
- Federal tax credit detail: Energy Star requirements

Consult your tax professional for details.

You save on installation and you save every month on your energy bill. It really is a win-win solution for our customers.