Did you know? You just might be eligible for a tax credit on your federal
income tax return.
Did you make your home more energy efficient last year? I might be talking to you!
The Internal Revenue Service added geothermal heat pumps to section 25D
of its Code in October 2008. As a result, homeowners who spent the time
and money to install qualifying Residential Energy Efficient Property
(placed in service during the period between 2008 and 2016) can claim
a 30 percent tax credit on all related expenses.
Here’s what Manassas, VA homeowners like you need to know.
Condo or townhome; single-family or mobile home; first or second home,
the Residential Energy Efficient Property tax credit applies to yours,
as long as they are located within the United States, and are used primarily
as a residence. But what of the geothermal heat pump property itself?
That which qualifies for the Residential Energy Efficient Property Credit
uses stored solar energy from the ground to heat and cool your Manassas,
North Carolina-area home. Additionally, such property much meet Energy
Star® requirements in effect at the time of installation to be eligible.
Even better: The tax credit also applies to various installation-related
expenses — labor for onsite preparation and assembly, as well as
any necessary piping and wiring — and not just the initial purchase
of the geothermal heat pump property.
What’s not eligible?
The Residential Energy Efficient Property tax credit does not, and will
never apply to spending on equipment meant solely for hot tub or pool
conditioning, nor on previously used equipment.
When geothermal heat pump property is considered “placed in service”?
So says the Internal Revenue Service Code, Section 25: Geothermal heat
pump property is placed in service when installation is completed, except
when the home is new, or re-constructed. Such property is then considered
placed in service when the taxpayer takes up residence in the new, or
newly renovated house. To learn more about solar use a solar contractor
How do I claim the credit?
The IRS From 5695 must be used to claim the Residential Energy Efficient
There is no limit to the amount of credit that may be claimed on property
placed in service during, or after tax year 2009. Thereafter, the Residential
Energy Efficient Property credit can be used to offset regular income
taxes, as well as alternative minimum taxes (AMT).
Haven’t yet installed geothermal heat pump property? Call My Plumber!
Don’t wait any longer! The Residential Energy Efficient Property
credit will be available to all homeowners who haven’t yet installed
geothermal heat pump property, but do between now and the end of tax year. Call My
Plumber today about installing a geothermal heat pump in your Manassas, Virginia home.