26% Federal Tax Credit on GeoThermal Heat Pumps
Saving Americans Money on Renewable Energy Improvements
What is the Tax Credit?1
The renewable energy tax credit covers 26% of the total system cost, including installation, of GeoThermal heat pumps meeting the requirements of the ENERGY STAR program. This tax credit applies to residential installations only.
Over time, there is a gradual step down in the tax credit value:
| 26% Tax Credit for systems placed in service between 1/1/2020 and 12/31/2022 |
22% Tax Credit for systems placed in service between 1/1/2023 and 12/31/2023 |
What is the Deadline?
Get a 26% Federal Tax Credit on a new GeoThermal Air Conditioning system before it's too late.
Tax credit will decrease on Jan 1, 2023 and expire Jan 1, 2024.
To take advantage of this offer, call us at 941.474.9306.
Under the Bipartisan Budget Act of 2018, the GeoThermal tax credit that expired at the end of 2016 has now been extended through December 31, 2023.
What Are the Requirements?
- The tax credit applies only to new “qualified geothermal heat pump property”.
- To be eligible, all GeoThermal heat pumps must meet the requirements of the ENERGY STAR program which are in effect at the time of installation. Click here to see a list of ENERGY STAR certified GeoThermal heat pumps. Tax credit includes installation costs.
- The GeoThermal heat pump must be installed in a home you own and use as a residence. Existing homes and new construction qualify for the tax credit. Both principal residences and second homes qualify. Rentals do not qualify.
- Qualified GeoThermal heat pumps must use the ground or ground water as a thermal energy source to heat your home or as a thermal energy sink to cool your home. Equipment used exclusively to heat swimming pools or hot tubs is excluded.
- Read tax credit FAQs on Energy Star’s website.
Efficiency Requirements
To be eligible for the tax credit, GeoThermal systems must meet the following ENERGY STAR efficiency requirements:
| Water-to-Air | Water-to-Water | Direct Expansion |
|---|---|---|
| Closed Loop: EER* >= 17.1 COP** >= 3.6 |
Closed Loop: EER >= 16.1 COP >= 3.1 |
EER >= 16 COP >= 3.6 |
| Open Loop: EER >= 21.1 COP >= 4.1 |
Open Loop: EER >= 20.1 COP >= 3.5 |
How Do I Apply?
File Tax Form 5695 with your tax return. If you have already filed your return, you will need to file an amended return (Form 1040X) to claim these credits. Save your receipts and the Manufacturer’s Certification Statement2 for your records. Please contact the IRS directly, or talk to your tax professional, with questions on how to file.
IRS Contact Information & Forms
- www.irs.gov/contact
- 1-800-829-1040
- Form 5695 Instructions
- Form 5695
- Form 1040X Instructions
- Form 1040X
GeoThermal is a Smart Choice for Every Lifestyle.
No matter what type of home you live in, we’re here to help you choose the right GeoThermal system for you. A GeoThermal heat pump (air conditioning system) has many benefits to offer you — and the 26% tax credit is just the beginning. GeoThermal heat pumps are environmentally friendly, long-lasting and can save you up to 70% on your energy bills. Read more of the top reasons to choose a GeoThermal AC / heat pump.
Are You Ready to Go GeoThermal?
So, what are you waiting for? Call Symbiont Service Corp today, or click the live chat window to connect immediately with one of our friendly representatives. We’ll be glad to answer any remaining questions.
Start reaping the benefits of a GeoThermal heat pump in your home. Call: 941.474.9306 (FL West Coast) | 954.840.8735 (FL East Coast) | 800.881.4328 to get a free, detailed quote.
1 Disclaimer: The tax credit information contained within this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS).
2 A Manufacturer’s Certification Statement is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. Manufacturers should provide these Certifications on their website. Call the manufacturer, or search their website. EPA does not have copies of the Manufacturer’s Certification Statement. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.
Definitions:
* COP (Coefficient Of Performance) – of a heat pump is the ratio of the change in heat at the “output” (the water reservoir of interest) to the supplied work.
** EER (Energy Efficient Ratio) – The higher the EER rating, the more energy efficient the equipment is. This can result in lower energy costs. This DOE site can show how to calculate potential energy costs savings of a more efficient unit.