ClimateMaster Manufacturer’s Certification for Geothermal Tax Credit

If you sold ClimateMaster for a residential installation (including installations done in 2017), your homeowner may look to claim the re-instated geothermal tax credit.

As part of the claim process, homeowners will need ClimateMaster’s Manufacturer’s Certification of Geothermal Heat Pump Property Compliance. As a contractor, you can provide this at the time of installation or direct them to the ClimateMaster Residential Energy Credit page to download it.

 

Geothermal Tax Credit Reinstated – Retroactive to 2017

As part of the tax bill passed on Friday, February 9, Congress reinstated the federal geothermal tax credits for residential and commercial use.

Residential Geothermal Tax Credit

The residential credit (detailed below) applies to residential systems installed from January 1, 2017 through December 31, 2021.

Installation Year Tax Credit
2017 30%
2018 30%
2019 30%
2020 26%
2021 22%

Commercial Geothermal Tax Credit

The bill modifies language related to how commercial geothermal systems qualify for tax credits. Under the new bill, a commercial project becomes eligible for the tax credit in the year it commences, rather than the year the project’s system is placed into service.

For commercial geothermal systems, there is a 10% Federal Income Tax credit, which can be combined with solar and wind tax credits and energy-efficient building deductions.

What does this mean for you?

  • If you did geothermal installations in 2017, make sure those customers are aware that the credit has been reinstated. The IRS will post details here on how to claim this credit.
  • For commercial contractors, use this new rebate information to evaluate if geothermal may become a more viable solution for upcoming projects.
  • For residential contractors, make sure you’re leveraging the rebates in your marketing for geothermal. If you’re an HVAC Distributors customers and need help with your geothermal marketing, reach out to us.

HVAC Distributors is a ClimateMaster geothermal distributor for Pennsylvania and New York. Through HVAC Commercial Solutions, HVAC Distributors has access to ClimateMaster’s commercial line.

You can order qualifying product at any of our HVAC Distributors locationsby phone or through Web Order Entry.

Federal Tax Credits on Qualifying Residential Indoor Comfort Systems

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 has been extended and revised to provide federal tax credits on qualifying, high-efficiency residential HVAC products and systems through December 31, 2016.

Many Amana systems qualify for these rebates. Goodman has provided tax credit information and a tax certificate for each tax credit product type to the amana-hac web site.

From Goodman:

  • The maximum amount an eligible homeowner may receive in federal tax credits for purchasing and installing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, is now 10% of the cost of the improvement, including installation costs, up to $500 (there are per-item limits).

  • The $500 tax credit amount is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2016. If a residential homeowner has already claimed single-family home tax credits of $500 or more from improvements made prior to 2016, he or she cannot claim any new tax credits during 2016.

  • All furnaces and boilers, whether fueled by natural gas, propane or fuel oil, must have an AFUE rating of 95% or higher to be eligible.

  • Products or units must be installed between January 1, 2009, and December 31, 2016, to be eligible for tax credits.

Tax-Credit-Table

Requires:
Installation in an existing home (principal residence only). Not available on new construction or rentals. Complete details of the programs are available here.

You can order qualifying product at any of our HVAC Distributors locations, by phone or through Web Order Entry.

Federal Tax Deduction on Commercial/Industrial Space Heating

Cambridge HTHV Space Heaters, available through HVAC Commercial Solutions, are eligible for EPAct Tax Deductions of up to $0.60/square foot.

Tax benefits are available for both new construction and retrofit applications.

For full details, click here.

What is HTHV?
High Temperature Heating & Ventilation (HTHV) is a new technology class of products created by the Department of Energy with the goal of increasing the energy efficiency of heating equipment throughout the US.
Source: Cambridge Engineering

Learn more about this new technology here.

To purchase a qualifying Cambridge unit, contact HVAC Commercial Solutions.

Federal Geothermal Tax Credits Expiring This Year

The federal 30% tax credit on purchase and installation of geothermal equipment continues through December 31, 2016.

This tax credit can be combined with geothermal tax credits offered by EAP in the Philadelphia area.

Requires:

  • Installation in existing home (second homes qualify) or new construction
  • Installed equipment must meet ENERGY STAR requirements

Complete details of the tax credit program are available here.

You can order qualifying ClimateMaster product at any of our HVAC Distributors locations, by phone or through Web Order Entry.

The Big Question – Will the Credits Be Extended Beyond 2016?

The Geothermal Exchange Organization (GEO) is working to get the tax credits extended. The News interviewed Doug Dougherty, president and CEO of GEO, who provided some perspective of what may happen to the US geothermal industry if the credits are not renewed.