Geothermal Systems

 
 

Home Owner

ENERGY STAR qualified geothermal heat pumps:

Qualifying geothermal heat pump models ‘placed in service’ between January 1, 2009 and December 31, 2021, are eligible for a one-time tax credit. Reduction in the tax credit precentage, unders Section 48, are itemized below.
30% ~ January 1, 2017 thru December 31, 2019
26% ~ January 1, 2020 thru December 31, 2020
22% ~ January 1, 2021 thru December 31, 2021

Note: Clarifications issued by the IRS Notice 2013-70 explain that the distribution system for the home and back-up emergency heating or cooling system are not eligible for the tax credit.

It is recommended to consult with a tax preparer about receiving this credit. No proof of purchase will be required; however in case of an audit, owners are encouraged to keep a detailed invoice of their purchase on file. The contractor who sold and installed the system should list the purchase as a “Geothermal Heat Pump” on the invoice and that it “Exceeds requirements of Energy Star program currently in effect”. The taxpayer must have a copy of the Manufacturer’s Certification (see link below). A copy of the Manufacturer’s Certification document is not submitted with the taxpayer’s return, but must be retained by the taxpayer for tax records

Bard geothermal heat pumps qualifying for the tax credit:

GEO-TRIO Series

R-410A Refrigerant
  • GTC36S1-A*
  • GTC48S1-A*
  • GTC60S1-A*

GEOTEC Series

R-410A Refrigerant
  • GV27S1-A
  • GV38S1-A
  • GV51S1-A
  • GV61S1-A
  • GV71S1-A

GEO-DELTA Series

R-410A Refrigerant
  • GW0241S1-A
  • GW0361S1-A
  • GW0481S1-A
  • GW0601S1-A
  • GW0701S1-A

*To Quality For Geothermal Tax Rebate Credit compressor section must be installed with match and certified coil and/or blower section.

Bard’s Geothermal Tax Credit Bulletin

Manufacturer’s Certification Of Geothermal Heat Pump Compliance

IRS Residential Energy Credit Form #5695