Geothermal Tax Credits

Helping The Environment Could Save You Money

You might not fear April 15 anymore when you move forward with the investment and purchase a geothermal heating and air conditioning system. Your efforts to cut down your impact on the environment won’t go unnoticed.

The American Recovery and Reinvestment Act of 2009 was signed into law on February 16, 2009 by U.S. President Barack Obama, opening the door for heating, air conditioning and indoor air quality customers to be given increased tax credits, including geothermal tax credits. These credits apply to the installation charges of qualifying high-efficiency products and home efficiency improvements.

The Energy Policy Act of 2005 had a $300 tax credit for homeowners who installed geothermal heat pumps. EESA generates new $2,000 geothermal tax credits for individuals who install a geothermal heat pump – not subject to the $500 cap established for the products referenced above. EESA also qualifies geothermal heat pumps for a $6,667 geothermal tax credit when used on a jointly occupied dwelling unit, condominium, or for owners of cooperative housing. Also, the geothermal tax credits can be used to offset any Alternative Minimum Tax liability.

This tax credit is retroactive for 2008 and continues through 2016!

  • Geothermal heat pump ($2,000) must meet ENERGY STAR® requirements in effect at the time that the payments are incurred – the credit amount is 30% of the entire expenditure, capped at $2,000.

Freschi Service Experts in Antioch is available to answer your questions. And remember, we’re experts in the heating and cooling industry, but we’re not tax advisers, so please be sure to check with a qualified CPA to affirm which programs you’re eligible for.

Give us a call at 925-384-1303 for additional information.

Freschi Service Experts
715-A Fulton Shipyard Road
Antioch, California 94509

Phone: 925-384-1303
License # 424019