Have you and your family been researching the benefits of geothermal in your home? Have you been putting off the investment, waiting for the right time to make the purchase? Don’t miss your last chance to take advantage of the 30 percent federal tax credit set to expire December 2016! If you’ve been on the fence about this purchase, now is the best time to make your move. Why?
Federal Tax Credit Expiration
There are many benefits to utilizing geothermal energy, including decreased energy costs, green efficiencies and system longevity. This year, demand for geothermal systems is expected to grow exponentially as the federal tax credit draws to an end. With a 30 percent savings, customers could save you up to 30% in tax credits this year!
Keep in mind, the tax credit applies to both new and existing homes, including houses, apartments, condos and mobile homes. The property must be used as a residence by the taxpayer, but is not required to be the primary residence.
Be sure to stay tuned to our website to see if the tax credit is given an extension past 2016.
Iowa Tax Credit
The state of Iowa has additional tax credits for geothermal installation, further sweetening your deal. The Iowa tax credit matches 20 percent of the federal tax credit. What does this mean? Because the federal tax credit is set at 30 percent, the state tax credit is equal to 6 percent of the system cost.
There is no limit on the amount of the tax credit that can be claimed. Homeowners can claim a tax credit equal to 30 percent of spending on qualified geothermal heat pump property.
The tax credit may be claimed for spending on qualified geothermal heat pump property. This includes equipment that uses the ground or ground water as a thermal energy source to heat the home or as a thermal energy sink to cool the dwelling unit, and equipment that meets Energy Star® requirements. Spending for labor costs of the geothermal heat pump and for any associated piping, wiring and interconnecting ducting is also covered.
Claiming Credit Is Easy
Simply visit the IRS website, and complete Form 5695 to qualify. Always consult with your tax consultant or accountant to ensure accurate reporting, verification and coverage.
Geothermal systems are a great way to cut down on utility bills and reduce greenhouse gas emissions. As one of only two ClimateMaster geothermal elite dealers in the state of Iowa, Wyckoff Heating & Cooling is here to help you find the right fit for your home.
Numerous benefits include:
- Up to 80 percent savings on utility bills
- ENERGY STAR® qualified
- Up to 600 percent efficient
- Up to 50 year warranty
- Year-round installation options
- Installation requires only a minimal amount of yard space
- Green efficiency utilizing Earth’s natural, stable temperature
For a complete list of benefits and how geothermal systems work, download Wyckoff’s free geothermal eBook by clicking on the following link: https://wyckoffcomfort.com/ebook/.
Contact the professionals at Wyckoff Heating & Cooling at (515) 287-6000 before the clock runs out!