On December 17, the president signed a $858-billion federal tax bill that extended the energy tax credit, offering incentives under the Energy Star program for homeowners and builders to install natural energy systems such as geothermal heat pumps, and to use energy-efficient HVAC equipment and building materials. We here at BAIR Necessities put together a short guide to help you decipher the new energy tax bill and figure out how you can get money back on home improvement.
What is included in the Energy Tax Credit?
1. Geothermal and Natural Energy Systems
For those installing a geothermal system or another natural energy system, this tax credit is a real bonanza, offering 30% of the cost of the system, with no upper limit. Geothermal heat pumps use the ground to provide heating, air conditioning and, in most cases, hot water. Because they use the earth's natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available.
To qualify for this tax credit, you can install the geothermal system or other natural system on either a new or existing home, and second homes also qualify. Rentals do not qualify. This energy tax credit expires on December 31, 2016.
2. Home Improvements
This energy tax credit offers 10% of the cost of the specific home improvement, up to $500 (or a specific amount from $50 - $300). To qualify for this energy tax credit, you must make home improvements on an existing home that is your principal residence; you can’t get the home improvement tax credit for new construction, rentals, and second homes. You are not eligible if you have used the energy tax credit in 2009 or 2010. This energy tax credit expires on December 31, 2011.
Qualifying Home Improvements:
Find Out More
To find out which HVAC, ventilation, or geothermal systems qualify, please contact BAIR Necessities at 410.721.4142. BAIR Necessities is a Maryland-based HVAC and geothermal company blending old-fashioned service with cutting-edge green technology. BAIR Necessities is also one of the few companies in Maryland that has been installing geothermal systems for over a decade. After earning the rare Geopro certification, BAIR Necessities is truly the local expert on all things geothermal. For more information, contact BAIR Necessities at 410.721.4142.
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