Property owners have a very good reason to install a geothermal system in their homes to keep cool this summer. A residential energy efficient property tax credit of 30 percent was enacted in 2009 and is available until December 31, 2016. The tax credit is applicable on geothermal systems and can be claimed on the total cost of installing a ground source heat pump in an existing or new dwelling in the United States. The geothermal tax credits can be claimed on the cost of a geothermal system that has been installed after December 1, 2009, in the primary or secondary residential properties that are used as a residence by the taxpayer.

You can claim the tax credits on:

  • The total cost of a geothermal system that was installed after December 1, 2009.
  • The cost of any additional piping and wiring used to install the geothermal system.
  • Any labor cost associated with the installation of the geothermal system.

Geothermal systems refer to any equipment that uses the ground or groundwater as an energy source to heat or cool a house. In order to qualify for the geothermal tax credits the geothermal equipment needs to meet the requirements of the Energy Star program that are in effect at the time of installation.

It is important to note that the cost associated with the installation of additional ductwork or the installation of emergency heat equipment will not qualify for the geothermal tax credits. Contact your local professional HVAC contractor for more information on available geothermal systems that qualify for the tax credits.

For more information and expert advice on geothermal tax credits and other issues related to home comfort, please contact Comfort Systems. We have been proudly serving the Wichita area since 1996.

Our goal is to help educate our customers in Wichita, Kansas about energy and home comfort issues (specific to HVAC systems). For more information about geothermal tax credits and other HVAC topics, download our free Home Comfort Resource guide.

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