The 30% Tax Credit Is Back!

The 30% Tax Credit Is Back!

A taxpayer may claim a credit of 30% of qualified expenditures for a geothermal system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the geothermal installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original geothermal system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit varies by in service date.

The 30% Tax Credit Is Back! - Hinrichsen Heating & Air Conditioning, Inc.

THE REINSTATED TAX CREDITS ARE RETROACTIVE TO JAN. 1, 2017, AND EXTENDED TO JAN. 1, 2022.

What You Need To Know

Geothermal Heat Pumps

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2021
  • 22% for systems placed in service after 12/31/2020 and before 01/01/2022
  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2021.
  • The geothermal heat pump must meet federal Energy Star criteria.
  • The home served by the system does not have to be the taxpayer’s principal residence.

Recommended Next Step

Hinrichsen Heating & Air Conditioning, Inc.

Contact Hinrichsen Heating & Air Conditioning, Inc. at (309) 965-2604 to schedule an appointment to see how a Geothermal System can help heat & cool your, home, while providing up to a 60% savings off of your annual utility bills.

Daikin Conventional HVAC Systems - Hinrichsen Heating & Air Conditioning, Inc.

We are a founding member of the Geothermal Alliance of Illinois.

Daikin Conventional HVAC Systems - Hinrichsen Heating & Air Conditioning, Inc.

We are an accredited installer by the International Ground Source Heat Pump Association (IGSHPA).

Hinrichsen Heating & Air Conditioning, Inc.

We are a proud member of Your Preferred Contractor.