On December 1st 2009 The Environmental Protection Agency announced revised regulations for residential geothermal heat pumps (GHPs). The new requirements approve water-to-water geothermal pumps to qualify for the Energy Star label. In the past, the geothermal standards were conventional pumps, only. This means that homeowners are entitled to a 30 percent tax credit with the installation of any geothermal heating pump.
There are several facts to know about geothermal heating pumps, energy, and the green Tax Credit.
- Since, geothermal energy does not use fuel to create electricity, it’s considered to be excessively efficient.
- Geothermal energy’s underlying value is that it does not generate pollution.
- Primary, secondary and new constructions qualify for the tax credit. However, rental properties are not included.
- According to energy analysts, the water-to-water pumps will be 45 percent more efficient than the conventional ones.
- The green energy Tax Credit for geothermal pumps is effective through December 31, 2016.
- Unlike the new homebuyer Tax Credit, where there are income limitations, the energy efficiency tax credits do not impose any minimum or maximum requirements.
- Although, the geothermal heat pump Tax Credit now includes water-to-water geothermal pumps, certain components are not covered. For instance, ducts and emergency back-up systems are not associated with the geothermal heat pump’s efficiency and do not qualify for any exemptions.
- Homeowners can apply 30 percent of the installation and labor costs to the Tax Credit.
- All ENERGY STAR qualified geothermal heat pumps are eligible for the Tax Credit. To review a list of authorized manufacturers, click on “ENERGY STAR Geothermal Heat Pumps” to review the list.
- If you’re considering geothermal heating for your home or need professional advice, Hoffmann Brothers has the answers to your heating and cooling questions.