Tax incentives for installing a geothermal heating and cooling system can vary depending on the country, region, and specific tax laws in place. In the United States, there were federal tax incentives available for residential and commercial geothermal installations. Keep in mind that tax laws can change, so it's essential to consult with a tax professional or visit the official government websites for the most up-to-date information. Here are some of the incentives that were available in the US:
Federal Residential Renewable Energy Tax Credit (ITC):
- The federal government offered a tax credit for qualified residential geothermal installations, covering 26% of the total installation cost.
- The credit was applicable for systems installed through December 31, 2022.
- Starting from January 1, 2023, the residential credit was scheduled to decrease to 22%, unless extended or revised by Congress.
State and Local Incentives:
- In addition to federal incentives, some states, municipalities, or utility companies offered their own tax credits, rebates, or other financial incentives for installing geothermal heating and cooling systems.
- These incentives varied widely from one location to another, so homeowners needed to check with local authorities or utility companies to see what programs were available in their area.
Commercial Federal Tax Incentives:
- Commercial properties were also eligible for a federal tax deduction of up to $1.80 per square foot for installing energy-efficient systems, including geothermal heating and cooling, in buildings placed in service before December 31, 2022.
- This incentive applied to new constructions and retrofits of existing buildings, provided they met certain energy efficiency criteria.
Again, it's crucial to verify the current status of these incentives and any new programs that may have been introduced after 2023. You can check the official websites of the U.S. Department of Energy (DOE) and the Internal Revenue Service (IRS) for the latest information on tax incentives for geothermal systems. Additionally, working with a tax professional or an HVAC contractor familiar with energy-efficient installations can help you navigate available incentives and maximize potential savings.