Residential Federal Tax Credit for Geothermal Installations

In addition to any available rebates, taxpayers may also claim a percentage credit of qualified expenditures for a geothermal system that serves a dwelling unit. The residence must be located in the United States, owned by the taxpayer, and used as a residence by the taxpayer. The home does not have to be the taxpayer's principal residence. If the installation is at a new home, the "placed in service" date is the homeowner's date of occupancy. Qualified expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. Back up electric heat is specifically excluded. Contact your tax advisor for details. If the federal tax credit exceeds tax liability for a given year, the excess amount may be carried forward to the succeeding taxable year.