Don’t Forget About Tax Credits Before the Year Ends
December 31, 2016 is the last day that homeowners can take advantage of the generous tax credits that the U.S. Department of Energy (DOE) offers for geothermal heat pumps (GHPs) and solar systems for residential properties. The credits are part of the Recovery Act of 2009 aimed at spurring residential investments to cut energy use.
Geothermal Heat Pumps
A GHP is the most energy efficient way to heat and cool homes. These systems use the stored energy underground to exchange heat year-round, and offer the greatest durability of any type of HVAC system. When equipped with a desuperheater, a GHP can also provide the heat source for your home’s hot water.
In order to qualify for the credit, the equipment must meet the DOE’s minimum standards for Energy Star GHPs. The entire cost, with the exception of the ductwork, can be claimed for a tax credit of 30 percent, including installation.
There is no upward limit on the cost of the equipment or its installation. Primary residences and second homes qualify for this credit, but rental properties do not. New and existing homes qualify.
In order to qualify for the solar tax credits, the system must provide at least half the electricity your primary or second home uses. All Energy Star solar water heaters qualify for the credit, but it won’t cover solar water heaters for hot tubs or swimming pools. You can use the credit for a solar panel system on a principal or second home.
The DOE recently broadened the tax credit program to include other Energy Star-qualified home appliances like heating and cooling systems and water heaters, along with energy efficient windows, doors and insulation. The credits for these improvements have fixed caps regardless of their costs.
Taking advantage of these tax credits in 2016 will help you cut ongoing energy costs. To learn more, contact Sobieski Services, Inc. Our goal is to provide our customers in New Jersey, Pennsylvania, Maryland and Delaware with information about plumbing and HVAC issues to help them live in more energy efficient and healthier homes.