Geothermal heat pumps are a long-lasting and extremely efficient HVAC option for residents of Tullahoma, TN. They use a whopping 45 percent less energy than conventional heating and cooling systems. You will be happy to learn that thanks to the geothermal system tax credit, this technology is now more affordable.
Benefits of Geothermal Systems
Whether you’re interested in saving money or conserving natural resources, geothermal heating and cooling is the way to go. These systems transfer energy between your home and the ground or a body of water. According to the Department of Energy, geothermal heat pumps last up to 25 years, which is nearly twice as long as conventional air conditioners. The underground portion of the system has an expected lifespan of over 50 years.
Earn Tax Credits on Your Geothermal Installation
In February 2018, Congress reinstated several tax credits for geothermal heat pumps and renewable technologies. To be eligible, the system must meet Energy Star requirements. The savings reduce the costs of installation and overall ownership. The credits expire on December 31, 2021. However, until then, the amount of tax credit you can claim will depend on installation date:
- 30% for systems placed in service by December 31, 2019
- 26% for systems placed in service after December 31, 2019 and before January 1, 2021
- 22% for systems placed in service after December 31, 2020 and before January 1, 2022
The credit applies to systems installed on or after January 1, 2008, and on or before December 31, 2021. From now through December 31, 2021, entrepreneurs can claim a Business Energy Investment Tax Credit equal to 10 percent of their geothermal installation costs. The business and residential tax credits apply to labor costs for site preparation, assembly or original system installation, and piping or wiring. Geothermal system owners will be able to carry over any remaining tax credits to the following tax year.
Upgrade Your System Today
The installation process for geothermal heat pumps is more complex than that used for other HVAC systems. However, they pay for themselves in about five to seven years. You will also save money for decades to come on repairs and utility costs. If you’re interested in learning more about this technology, call Stroop’s Accurate Refrigeration, Inc. at 931-241-4851. We have the experience for efficient and accurate geothermal installation and maintenance.
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