Geothermal Tax Credit Reinstated
Tax Credits are back! On February 9, 2018, Congress retroactively reinstated the clean energy geothermal tax credit for residential and commercial installation of geothermal heat pumps in Dagsboro, DE, Easton, MD and surrounding areas.
What does that mean?
The geothermal tax credit had previously ended in 2016. However, the tax credit is now available for systems installed beginning Jan. 1, 2017 and extended through to Jan. 1, 2022.
How much is the geothermal tax credit?
The tax credit is up to 30% of the total installed cost. Additionally, Maryland residents qualify for up to a $3000 grant for primary residence geothermal installations. However, ductwork and back up heat are excluded.
How do I apply for the Federal Tax Credit?
Once the system is installed, documents are required. Such as, a paid invoice and AHRI certificate are needed when filing year-end taxes. To claim your geothermal tax credit, you need IRS form 5695, Residential Energy Credits, for the year when you had the equipment installed. For example, if you completed a retrofit in 2017, you would fill out the form for 2017, to submit by April 2018.
Who is Eligible for a GHP Tax Credit or MD Grant?
Please consult a tax professional in Rehoboth Beach, DE or Salisbury, MD to determine personal eligibility status. Coastal Comfort cannot determine an individuals eligibility.
Are geothermal heat pumps efficient?
Geothermal heat pumps, as well as all other types of heat pumps, have efficiencies rated according to their coefficient of performance or COP. It’s a scientific way of determining how much energy the system produces versus how much it uses. Most geothermal heat pump systems have COPs of 3-4.5. That means for every unit of energy used to power the system, 3-4.5 units are supplied as heat. Where a fossil fuel furnace may be 78-90 percent efficient, a geothermal heat pump is about 400 percent efficient. Some geothermal heat pump manufacturers and electric utilities use computers to accurately determine the operating efficiency of a system for your home or building.
How do I get started?
Easy! Contact the geothermal experts at Coastal Comfort for a FREE estimate on either a new installation or replacement of the existing geothermal heat pumps in Lewes, DE; Salisbury, MD, and surrounding cities.