Geothermal tax credit continues in 2012  

Receive a tax credit for installation of a geothermal heat pump.

Tax Information

While the bulk of energy-efficiency tax credits expired at the end of 2011, a very important tax credit remains: for installing a geothermal heating and cooling system in your principal residence.

Installing an ENERGY STAR® qualified geothermal unit will net you a 30 percent tax credit on both parts and labor of the unit, with no upper limit.

And while geothermal units cost more up front, you’ll experience dramatic energy savings year after year. EnergySavers.gov estimates that what you spend to install a geothermal system will be recouped within 5 to 10 years; and because the life expectancy of a geo unit is estimated at 25 years for the inside unit and more than 50 years for the loops, you’ll be able to save a tremendous amount of energy—and money—as long as you live in your home.

In addition to the tax credit, your Touchstone Energy Cooperative offers a rebate on the installation of geothermal units; contact your REC before purchasing a unit for specific details. Geothermal heating units may also qualify you for special electric heat rates through your REC. Again, check with your REC for details.

Besides offering energy-efficient heating and cooling, other advantages of geothermal units include:

• Many offer the ability to heat water free
• Units are extremely quiet because there are no outside condensing units
• Units take up less space than other types of HVAC systems
• Geothermal units provide excellent zone air conditioning, allowing different parts of your home to be heated or cooled to different temperatures
• Installing a geothermal unit increases the value of your home for resale

For more information

• Check out EnergyStar tax credit details, including qualifying models
•  DOE Energy Savers for details on the advantages of geothermal

 

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