Renewable Energy Tax Credits and Grants are Available
Geothermal system installation can get expensive. However, to relieve some of the financial burden, Energy Improvement and Extension Act of 2008 (H.R. 1424) offers tax credits for both residential and commercial geothermal system installation.
You might have heard a rumor that these credits are no longer available – this is NOT true. As a homeowner who installed a ground loop or ground water geothermal heat pump, you can expect to receive a credit of 30% of the total cost. A 10% credit is available to commercial building owners. The credit covers the cost of labor and the material needed to create and install the system, but does not cover the system that distributes the air throughout the house, or a backup system.
To qualify for the tax credit, your system has to meet or exceed current EnergyStar requirements. Energy Star says systems must have an efficiency rating that is at least 45% higher than traditional alternatives. The tax credit is applicable to both primary and secondary residences. The geothermal systems have to be working as of January 1, 2008. Systems installed in 2008 will have a $2000 maximum on their credit, but any systems installed after, until 2016, can receive a full credit of 30%. You can claim the credit by completing the Renewable Energy Credits subsection on your tax return form. The credits will be available for redemption through December 31, 2016. Talk to your tax advisor to discuss the option of filing for renewable energy credits.
Available Geothermal Incentives (As of July 2014)
- Federal Government: 30% Tax Credit
- Maryland Energy Administration: $3,000 Grant
- BGE Energy Savers Program: $1,800.00 Rebate
- Current Status of Maryland County Tax Credits
- Anne Arundel: $2,500.00 (Up To)
- Prince George: $5,000.00 (Up To)
- Howard: Suspended
- Montgomery: Suspended on Nov. 8, 2011
Please Note: All incentives are subject to change at any time.
While we service all surrounding counties our specialty areas of service include: Annapolis, Bowie, Crofton, Pasadena, Laurel, Glen Burnie, Davidsonville, College Park, Maryland.