Did you know you may be eligible to receive a federal tax credit and a $1,500 POWER MOVES® rebate to install a geothermal heating and cooling system?
In February, the U.S. Congress passed a budget deal reinstating a federal income tax credit for geothermal heating and cooling systems, also referred to as geothermal heat pumps. The credit previously lapsed at the end of 2016.
The reinstated tax credit is retroactive — meaning people who installed geothermal heat pumps in 2017 may be eligible for the credit — and it will be phased out over the next several years. That means installing a geothermal heat pump soon will maximize your tax credit! Of course, your local electric co-op still offers a $1,500 POWER MOVES rebate to install a qualifying new geothermal system.
The incentives can help offset some of the cost of installing a geothermal system, which is more expensive than installing traditional heating and cooling systems. Yet geothermal heat pumps help homeowners save money over time by reducing the monthly energy costs to heat and cool their homes.
Geothermal heat pumps are more efficient than traditional systems by tapping into the earth’s naturally moderate temperatures to help cool and heat your home. While Hoosiers endure frigid winters and blistering summer heat above ground, the underground temperature actually remains pretty stable year-round. A geothermal heat pump takes advantage of that stability by exchanging heat within the ground (or water) and your home. That efficient exchange requires much less electricity to maintain comfortable temperatures indoors in extreme temperatures compared to other types of heating and cooling systems.
If you have ever pondered installing a geothermal system, now may be the best time to explore the possibility! You should seek experienced contractors who can provide you with all of your available options. You also can contact your energy advisor at your local co-op, who can provide guidance on your first steps.
More information about the POWER MOVES rebate can be found at PowerMoves.com/geothermal. Additional information about geothermal systems can be found at energystar.gov.
Consult your tax advisor for details about the federal tax credit and to discuss your eligibility.