GET A TAX BREAK

Old House Journal - - Ohj - Visit dsireusa.org for tax in­cen­tives avail­able by state.

In Fe­bru­ary, fed­eral tax cred­its were re­in­stated for res­i­den­tial and com­mer­cial geother­mal in­stal­la­tions in the U.S. The tax cred­its cover any geother­mal projects be­gun since Jan­uary 2017 and will cover new ones that get un­der­way by Jan­uary 2022. To meet the re­quire­ments, the sys­tem must use the ground or ground wa­ter as a ther­mal en­ergy source to heat the dwelling. The sys­tem must also meet En­ergy Star stan­dards in ef­fect at the time of in­stal­la­tion.

The cred­its pro­vide a tax break of be­tween 22 and 30 per­cent of the to­tal cost of the sys­tem, in­clud­ing in­stal­la­tion costs. For a $30,000 sys­tem in­stalled dur­ing the win­dow of max­i­mum cred­its, that’s a po­ten­tial cost sav­ings of $9,000. State cred­its, where avail­able, can bump up the af­ter-tax cash sav­ings sig­nif­i­cantly. In New York State, for ex­am­ple, a 4-ton sys­tem is el­i­gi­ble for a $6,000 re­bate. That’s a lot of dough.

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