Put a Dent in the Cost of Your New Geothermal Heating and Cooling System with Tax Credits
Taking advantage of the available geothermal heating and cooling tax credits can put a nice-sized dent in the cost of your new system. All it takes is filing the tax credits with your 2014 income tax returns next spring. Include the Residential Energy-Efficient Property Tax Credit with your federal tax return. This is a 30% tax credit for the installation of a geothermal heating and cooling system. Here's why this tax credit is so great:
- Just in case you do not have your new system installed this year, this tax credit is available through the end of 2016.
- This tax credit can be used to offset both regular income taxes and alternative minimum taxes.
- If this tax credit exceeds your income tax liability, the remaining balance can be rolled forward to offset your tax liability in future years.
- If you also install a solar-ready heat pump or air conditioner as part of your system, you can file the Federal HVAC Credit (25C), which offers a tax credit of up to $300.
- The federal solar credit (25D) equals 30% of the cost - with no upper limit - of the solar modules, including installation costs. It also covers 9% of the total cost of the solar-ready products.
- By installing a solar-ready outdoor unit (air conditioner or heat pump) and attaching at least one solar module, the solar-ready outdoor unit will qualify for both the solar and HVAC tax credits.
There are many ways to save money on your new geothermal heating and cooling system installation through tax credits and local rebates. The Comfort Services team will gladly discuss the system options that qualify for federal tax credits and local rebates. Call 803.772.4490 for 24/7 service.