Tax Credit Rebates

Geothermal*

The Energy Credit

 In October 2008, geothermal heat pumps were added to the Internal Revenue Code. This created a 30% tax credit for costs associated with qualified geothermal equipment “placed in service” through the end of 2016. Property is usually considered to be placed in service when installation is complete and equipment is ready for use. However, if the system is part of the construction or renovation of the house, it's considered placed in service when the taxpayer takes residence in the house.  

 

• 30% of total system cost
• No limit to credit amount for 2009 and beyond
• Can be used to offset AMT tax
• Can be used in more than one year
• Can be combined with solar and wind tax credits
• Can be combined with energy efficiency upgrade credits

 

What’s Eligible

Geothermal equipment that uses the stored solar energy from the ground for heating and cooling, AND that meets Energy Star requirements at the time of installation is eligible for the tax credit. Covered expenditures include labor for onsite preparation, assembly, or original system installation and for piping or wiring to connect a system to a home. The structure must be located in the United States and used as a residence by the taxpayer, although primary residency isn't required. In fact, if geothermal is installed in more than one home, there is no limitation on the number of times the credit can be claimed. 

 

Geothermal Tax Credit Links:

IRS
Renewable KY State

Geothermal Utility Rebate links:

Duke
Owen Electric
Butler Rural


CONVENTIONAL SYSTEMS*

There is a 30% Tax Credit, with a cap of $1500 available for installing new efficient conventional equiptment in your home.


What’s Eligible

 

The follwing list of equiptment is available for the tax credit:

HVAC Central A/C
Split Systems:SEER >= 16, EER >=13Package systems:
SEER >= 14, EER >= 12
30% of cost, up to $1,500
 
Air Source Heat Pumps
Split Systems:
HSPF >= 8.5, EER >= 12.5, SEER >= 15
Package systems:
HSPF >= 8, EER >= 12, SEER >= 14 
30% of cost, up to $1,500


Natural Gas or Propane Furnace
AFUE >= 95
30% of cost, up to $1,500
 
Oil Furnace
AFUE >= 90
30% of cost, up to $1,500


Gas, Propane, or Oil Hot Water Boiler
AFUE >= 90
30% of cost, up to $1,500

Conventional Tax Credit Links:

IRS
Energy KY State

Conventional Utility Rebate links:

Duke
Owen Electric



Commercial Systems - Tax Credits*

There are tax credits available for commercial applications: a tax credit of 10% of the total investment is available (no maximum) for a commercial installation.


*Always consult your tax professional.

Testimonials

Dear Arronco,
 

We are pleased to write a letter of recommendation of our Geothermal Heating System which your company installed and has been maintaining.

We have had many different types of heat, electric ceiling cable heat, gas, heat pump and propane. This by far is the best system we have ever had.

The house is extremely warm in winter and cool in summer without turning the thermostat to a high degree. In the winter, we are able to leave it setting on 70 and in the summer we usually have to keep it at 75 or higher.

As you know we have a large home. Approximately 6000 square feet finished with total heat and cooling. Our largest utility bill ever has been approximately $220 for 1 month, We even have a swimming pool that filters all summer long.

We have had no interruption in heating or cooling. In the 5 ½ years we have lived here you have done routine maintenance and we have had no other problems. Your service department has always been very helpful when we call.

We hope we will always be able to live in a home with Geothermal heat and cooling.

Sincerely,

Dick and Patty