Residential Geothermal Incentive Programs

 

 

State and Federal incentive programs help residential customers with installations of geothermal heating and cooling systems.

 

30% Federal Tax Credit:

• New and Retrofit Customers

The Energy Improvement and Extension Act of 2008 (H.R. 1424) offers a one time tax credit of 30% of the total investment for homeowners who install residential ground loop or ground water geothermal heat pumps through 2016. To qualify, the systems must meet or exceed EnergyStar requirements. Owners can file for the credit by completing the Renewable Energy Credits subsection on their tax return using IRS Form 5695. For taxpayers that are subject to the Alternative Minimum Tax, they can claim the credit on their taxes for the following year. No proof of purchase will be required; however, in case of an audit, you are encouraged to keep a detailed invoice of your purchase on file. We will list the purchase as a "Geothermal Heat Pump" on the invoice and that it "Exceeds the requirements of Energy Star program currently in effect".  Consult your tax professional for specific advice on taking advantage of the tax credit.    

 

NYSERDA Reduced Cost Energy Audit and New York State Financing Incentive:

• Retrofit Residential Customers ONLY

NYSERDA (New York State Energy Research and Development Authority) offers a financing incentive up to $25K for residential installation of qualified energy efficient and renewable energy measures—which include geothermal heating and cooling systems.  Later in 2012 this will be payable as a part of your monthly electric bill.  Aztech Geothermal is a Building Performance Institute (BPI) Accredited contractor and is able to perform your energy audit needed to make your project eligible for NYS incentives. 

 

Click here for information about the NYS incentive programs

 

Click here for your application for a reduced cost Energy Audit

 

Other Financing Options:

Home Equity Loan or Line of Credit can be a good way to go if you plan on financing the system.  These products are offered by your local bank or credit union.  Interest rates can be very attractive.  In addition to the low rate, your interest may be tax deductable, effectively lowering the cost of financing even further. 

 

FHA Title-One Home Improvement Loan may also be a good way to go.  The program offers many benefits not available through traditional financing options.

• Loan decisions within 24-48 hours

• No equity required

• No appraisal necessary

• Obtain up to $25,000 for a single-family home or up to $12,000 per unit (max $60,000) for a multi-family

• Low fixed rates

• Flexible payment terms of up to twenty years with no prepayment penalties

• Interest may be tax-deductible

 

To find out more about Title-One Loans contact Aztech Geothermal.