American Recovery and Reinvestment Act
On February 17th, 2009, President Obama extended and expanded the “American Recovery and Reinvestment Act“. The American Recovery and Reinvestment Act is a bill that removed caps on renewable energy technologies including Geothermal heat pumps. This allowed homeowners to receive a 30% tax credit (labor and material) for the installation of a qualified Geothermal heating/cooling system. This one-time tax credit could be substantial considering the cost of a new geothermal system installation starts around $20,000. Therefore, a 30% tax credit would net a $6,000.00 break on your tax burden. This tax credit can also be used by those who already have a geothermal system but need to replace an aging system. Please note that you will need to consult with your Tax Advisor to see if you can utilize the credit; R.E.Sanders, Inc. is simply letting you know there is a tax credit available to qualified homeowners.
For those who took advantage of the American Recovery and Reinvestment Act, it really helped on their R.O.I. (return on investment). However, the bad news is that the program is scheduled to conclude at the end of 2016. So if you have an existing geothermal system, 10 years or older, it would be wise to give serious thought to replacing it while you can still take advantage of the tax credit.
To find out more about the program and pricing on a new system, please call R.E. Sanders at (717)843-7894 and ask for Joel Moore.