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Tax Credits for Residential Geothermal Heating and Cooling Installations
On October 3, 2008, the Emergency Economic Stabilization Act of 2008 was signed into law creating a 30% Federal tax credit for homeowners who install geothermal heat pump systems in their new or existing home. This credit applies to geothermal systems placed into service through the end of 2016. At the time of its signing, the credit was capped at $2,000 per tax payer.
The American Recovery and Reinvestment Act of 2009, signed into law on February 17, 2009 removed the $2,000 cap making the credit a full 30% for qualified installations placed into service beginning January 1, 2009.
In addition to Federal geothermal energy tax credits, the State of Missouri offers tax credits along with some utility companies.
Hoffmann Brothers is the premier St. Louis, MO Geothermal Heating and Cooling Contractor. Call for your Geothermal Heat Pump Energy Audit and learn more about Residential Tax Credits!
Highlights of the Federal Income Tax Credit for Geothermal Systems
·       Tax credit equal to 30% of total system cost
·       No limit to the maximum credit amount for 2009 and beyond
·       Can be used to offset Alternative Minimum Tax
·       Can be used in more than one year
·       Can be combined with solar and wind tax credits
·       Can be combined with energy efficiency upgrade credits
Geothermal Tax Credits for Residential Energy-Efficient Systems
In October 2008, geothermal heat pumps were added to section 25D of the Internal Revenue Code, which provides a 30% tax credit for spending on qualified property placed in service through the end of 2016. The credit was made retroactive to the beginning of 2008, and was capped at $2,000. In February 2009, the $2,000 cap was removed for geothermal heat pump property placed in service after December 31, 2008.
Geothermal Energy Tax Credits for Condominiums
Owners of condominiums contribute to the upkeep of the condominiums by paying money to a condominium management association. Where such a management association spends money on installing qualified geothermal heat pump property, each member of the association can claim a tax credit on his or her share of that spending. However, the association must qualify as a “homeowners’ association” under section 528(c)(1) of the tax code, and “substantially all” of the units in the condominium project must be used as residences.
Business Use
If a dwelling unit serves a dual purpose, such as for a home office in the dwelling, the spending may have to be allocated between residential and business use. If the portion considered residential spending is at least 80%, then all of the spending qualifies for the residential credit. There is a 10% tax credit available for business use of geothermal heat pump property, and 5-year MACRS accelerated depreciation.
Claiming the Geothermal Tax Credit
IRS Form 5695 (2008) is used to claim the Residential Energy Efficient Property Credit
New Home Example
You contract to build a new home in 2010. The builder spends $20,000 to install a geothermal heat pump system. You move into the home in March, 2011.
2011 Tax Credit:        $20,000 x 30% = $6,000
Existing Home Example
You spent $10,000 to install a geothermal heat pump system in your existing home. You paid the balance and had the geothermal heat pump installed in 2010.
2010 Tax Credit:        $10,000 x 30% = $3,000
Second Home Example
You spend $20,000 to install a geothermal heat pump system in your lake home during 2010. You previously installed a geothermal heat pump in your main home during 2010.
2010 Tax Credit:        $30,000 x 30% = $9,000
There is no limitation on the number of times that the residential credit can be claimed.
Geothermal State Incentives & Utility Incentives
Missouri offers tax incentives, rebates or low interest loans to encourage the installation of geothermal heat pumps. Many utilities also offer incentives such as rebates or financing programs to encourage the installation of geothermal heat pumps. Please check with your tax advisor or ask a Hoffmann Brothers representative to find out what is available.
Contact the Expert Residential Geothermal Contractors at Hoffmann Brothers
 For over 20 years, Hoffmann Brothers has proudly installed and serviced Geothermal and other Energy Efficient heating and cooling systems throughout the St. Louis, Missouri Metropolitan Area. Please give us a call today at (314) 631-5892 or send us an email on our Contact Us page.
Our service area includes St. Louis County, Missouri, St. Louis City, Jefferson County, St. Charles County, St. Clair, Illinois, Madison County, Kirkwood, Chesterfield, Des Peres, Wildwood, Ladue, Town and Country, Frontenac, Clayton, Sunset Hills, and Creve Coeur


Save $20 off any repair.

Contact Hoffmann Brothers for information on tax credits that are available for a Geothermal Heat Pump Installation!

Hoffmann Friends

Hoffmann Brothers Heating & Air Conditioning:

1025 Hanley Industrial
St. Louis, MO 63144
Office: (314) 664-3011
Fax: (314) 256-2716

St Louis Plumbing Contractors
1027 Hanley Industrial
St. Louis, MO 63144
(314) 664-9705

St Louis Water Heater Contractors:
4312  McRee
St. Louis, MO 63110
Office: (314) 664-8574

Hoffmann Brothers St. Louis Mechanical Contractors:
1635 Tower Grove Avenue
St. Louis, MO 63110
Office: (314) 664-3536

St Louis Missouri Workers Compensation

Roskin & Hoffmann
10900 Manchester Rd, STE 213
St. Louis, MO 63122
Office: (314) 821-9013
Fax: (314) 821-4580

The Law Offices of Stephen J. Hoffmann
105 Concord Plaza, Suite 209
St. Louis, MO 63128
Office: (314) 729-0803

Tennessee Geothermal Contractor

Roscoe Brown
959 N Thompson Lane
Murfreesboro, TN 37129
Office: (615) 893-6972




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Hoffmann Brothers
Geothermal Heating & Cooling Company
4301 Lafayette Ave.
St Louis, MO 63110