What Should Oil City, PA Homeowners Know about the Geothermal Heat Pump Tax Credit?

 

Tax season is here and there are still a few weeks left to take advantage of some lofty credits available to Oil City homeowners. For the last several years, the IRS has allowed numerous tax breaks for homeowners who upgraded their home with energy efficient appliances and units. Windows and doors were a popular upgrade choice, but this credit expired at the end of 2016 and it was capped out at $500 per household.


What is a Geothermal Heat Pump?

 

A geothermal heat pump is a very cost effective way to heat and cool your home. It is similar to an ordinary heat pump, but it uses energy from the ground instead of the air. It provides heating, air conditioning, and hot water to your home.

 

While the upfront cost for a geothermal unit is more than a traditional HVAC system, it’s one of the most efficient and comfortable heating and cooling technologies available today.


All About the Geothermal Heat Pump Tax Credit


The good news is that geothermal units can give homeowners a significant tax break this year—in fact, it’s a much bigger break than what you’d receive with upgrading your entry door or replacing a few windows.

 

The geothermal heat pump tax credit offers homeowners a 30% break on their taxes. This means that 30% of the cost of your new geothermal unit is deducted from your taxable income. Since geothermal units are a large investment for a lot of homeowners, this can result in a significant tax break for those filing in 2016.


Missed the 2016 Tax Credit? You Can Still Save Money

 

If you missed the geothermal heat pump tax credit after the December 31, 2016 deadline, not all hope is lost in terms of saving money. The good news is that homeowners can experience significant energy savings with this technology all throughout the year. You’ll enjoy a home that’s more comfortable during the summer and winter months, and you won’t need to worry about skyrocketing utility bills draining your bank account.

 

Stewart Well Drilling installs energy efficient geothermal units for heating and cooling. Contact us today for more information by calling 724-658-4488 or e-mail us at elmer@stewartwelldrilling.com.