By Kari Rau
December 30, 2020: In the newest spending bill recently passed by Congress, legislation includes key renewable energy tax credit extensions for Geothermal Heat Pumps. Previously, the tax credits were set to decrease after December 31, 2020 to 22%. Now, the tax credits will remain in effect at 26% until the end of 2022. In 2023, the credit steps down to 22% and then expires in 2024. Note: the tax credit was at 30% in 2019 until it deceased to 26% in 2020.
What Does This Mean?
It means that homeowners that want the most energy efficient heating and cooling system available can now continue to receive a 26% tax credit through December 31, 2022. Just considering a geothermal system in your home puts in you in an elite category of exceptionally smart homeowners. We call them Genius Geothermal Homeowners because they are not just looking to save money, they want to reduce their reliance on fossil fuels and build sustainable, safe, and efficient homes.
Who Is Eligible for the Geothermal Tax Credit?
For most homeowners, any geothermal heat pump placed into service before December 31, 2022 can be eligible for the federal tax credit. There are certain energy efficiency requirements that must be met so make sure to determine that with your installer. Keep in mind you can also combine other applicable energy efficiency upgrades like solar too. And as always, consult a tax professional for guidance.
Are There Other Geothermal Incentives or Rebates Available?
For our clients in Colorado, check with your local utility company for possible geothermal heat pump rebates. United Power offers a Geothermal Heat Pump Rebate Program, more information HERE. Xcel Energy also offers heat pump rebates. And for our norther Colorado clients, Poudre Valley REA also offers geothermal heat pump rebates.
Certain requirements apply to each program such as Energy Star requirements, installer requirements, etc so make sure you familiarize yourself and ask your HVAC contractor or geothermal installer.
What Are The Benefits of Having a Geothermal System?
The perks of having a geothermal system installed in your home are abundant and now is a great time to get an energy efficient, environmentally friendly, eco-luxury geothermal system. To learn more about geothermal benefits Click Here.
The landscape for promoting the use of energy efficient renewable energy is ever changing. As more and more people see the benefits and advantages of installing these systems in their homes, they are always asking us, “Why aren’t more people doing this?!”. The good news is that it more and more people are!
Family-owned and operated since 2005, Colorado Geothermal Drilling has been the leading installation contractor for geothermal systems along the Front Range in Colorado. We strive to master leading edge technology and pride ourselves on the quality of services we commit to our clients. Our set-up is unique as we are able to access compact areas with our equipment, setting us apart from other drilling operations. With our vast knowledge of geothermal design and installation we can provide customers with valuable information, answering any questions, and providing the best energy efficient system to fit the clients’ needs. The combination of this equipment and our personnel allow us to successfully and repeatedly complete numerous drilling projects along the Front Range. We can also assist a client’s other contractors during any part of the planning process. We want to make sure our clients have the most energy efficient geothermal system to fit their needs.
With over 600 systems installed, our background in geothermal design and installation is incomparable. With a growing interest in renewable energy, we are committed to bringing affordable geothermal systems to all! We are the geothermal experts.