Residential renewable energy tax credit programs for personal property just keep getting better. Federal and state government agencies continue to introduce new environmentally-friendly programs and incentives to encourage homeowners to use sustainable energy sources, reduce their energy consumption, minimize their carbon footprint and invest in high efficiency appliances and systems to operate their homes. The Residential Renewable Energy Property Tax Credits (Section 1122) program was recently revised to offer taxpayers unlimited 30% renewable energy tax credits for qualified, ENERGY STAR® geothermal heat pumps. The tax break is retroactive to January 1, 2009.

Federal residential renewable energy tax credits were first introduced in the US by the Energy Policy Act of 2005. At that point, the law was restricted to solar-electric systems, solar water heating systems and fuel cells. In 2008, small wind-energy systems and geothermal heat pumps were added to the sustainable energy tax credits program under the Energy Improvement and Extension Act. While these laws opened homeowners’ eyes to the financial benefits of investing in energy efficient home improvements, they were limited to $2,000. By 2009 the American Recovery and Reinvestment Act eliminated the cap on renewable energy tax credits for all eligible technologies (except fuel cells) placed in service after 2008. The program has been extended to December 31, 2016 and has gained national momentum.

ClimateMaster’s ENERGY STAR geothermal heat pumps are covered by the currentAmerican Recovery and Reinvestment Act’s Residential Renewable Energy Property Tax Credits (Section 1122) program. Unlike the Residential Energy Property Credit (Section 1121) for traditional products that expired at the end of 2011, Residential Renewable Energy Property Tax Credits (Section 1122) is active through the end of 2016. Under this law (1122), taxpayers can claim unlimited 30% renewable energy tax credits for qualified, ENERGY STAR geothermal heat pumps installed in US homes on or after January 1, 2009 and on or before December 31, 2016. If the geothermal pumps were/are installed as part of new home construction, residents must take occupancy of the house within these dates to qualify. Eligible homes do NOT have to be the taxpayer’s principal residence. Qualified geothermal heating and cooling systems installed in 2008 are still limited to a cap of $2,000 in sustainable energy tax credits.

Contact a ClimateMaster GeoElite dealer today for more information about our ENERGY STAR geothermal heat pumps and residential renewable energy tax credits.