Counting on the Benefits: Learn About Geothermal Heating and Cooling Tax Credit
There are many reasons why it’s good to go alternative. Though this may require the household to try out installations that are not yet too popular for many consumers, still you are destined to get a number of benefits if you try out the promise of alternative energy resources. Take geothermal energy for example. Did you know that you can get many benefits from going this route? One such benefit is that you are doing the environment a favor since this is a clean energy resource with almost negligible emissions.
Yes, consumers can have this and these geothermal heating and cooling tax credit incentives can be yours as well once you decide that geothermal related installations like heat pumps are introduced in your home.
Based on the rules set up in the United States, the government offers a tax credit amounting to 30 percent of the actual cost. And this includes the installation and the labor costs with not upper limit. The geothermal tax credit offered by the government is in effect until 2016, thus there is enough time for your household to get into this energy resource.
Based on the actual ruling that specifies and explains the federal geothermal tax credit, the system must be installed in one’s home between January 1, 2009 and December 31, 2016. The time frame is just enough for someone who is late into adopting this energy option.
How to avail of the geothermal heating and cooling tax credit ;
In order to be a beneficiary of this program, the cooling and the heating system of the property should meet first the requirements of ENERGY STAR. This means that geothermal heat pumps that you will add to the property should meet the energy requirements as set by the US Environmental Protection Agency.
You can be sure that the GHPs are part of the list since the US EPA regards these pumps are the most efficient and comfortable cooling and heating solutions for homes. As validated by the US EPA, the geothermal heat pumps are known to be 45 percent more energy efficient than the traditional options. Also, it has been noted that this now includes the water-to-water pumps which provides space conditioning with the use of indoor refrigerant to water heat exchange.
For consumers wanting to take advantage of the IRS geothermal tax credit, an application form or IRS form should be properly accomplished. The 2010 IRS Form 5695 should be properly accomplished, and this should be filed with the appropriate agency. But keep in mind that there are some costs and components that may not be covered by the ruling. For example, the emergency back-up system and the ducts may not be covered since these are not directly involved in advancing the efficiencies of the pumps.