What is Geothermal?
Geothermal is of, relating, or produced by the internal heat of the earth. For the purposes of this website when the word geothermal is used we will be referring to geothermal heating, ventilation, and air conditioning systems for residential or commercial properties.
Are there any tax incentives or tax credits if I install a geothermal HVAC system?
There is a 30% tax credit of total cost of installation. There are a few exceptions so be sure to check the IRS guidelines or with your tax professional. Here are a few highlights:
*No limit to the maximum credit amount
*Can be used to offset AMT tax
*Can be used in more than one year
*Can be combined with solar and wind tax credits
*Can be combined with energy efficiency upgrade credits
*Home must be located in the U.S.
*Does not have to be primary residence
*Includes houses, apartments, condos, and mobile homes
*Geothermal heat pump must be energy star qualified
*Installed between 01/01/2008 and 12/31/2016
For more information about geothermal check out these links:
*Geothermal resource Council
There are tax credits available from the state of Kentucky. For existing residential properties the tax credit is 30% of installation costs not to exceed $250. It is recommended that you consult a tax professional about your individual circumstances.