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You Could Qualify for a Residential Energy Efficient Property Tax Credit

You may qualify for a tax credit on your 2015 federal income tax return. That is, if you took steps to make your home more energy efficient last year. In October 2008, the Internal Revenue Service added geothermal heat pumps to section 25D of its Code. This addition offers homeowners a 30 percent tax credit on all expenses related to the installation of qualifying Residential Energy Efficient Property, for all such property placed in service during the period between 2008 and the end of 2016.

Here’s what Fayetteville, NC homeowners need to know.

What’s eligible?

The Residential Energy Efficient Property tax credit applies to all types of homes, so long as they are located within the United States, and are used primarily as a residence — kind of makes sense, right?

Qualifying geothermal heat pump property is that which uses the stored solar energy from the ground to heat and cool your Fayetteville, North Carolina-area home. Additionally, such property much meet Energy Star® requirements in effect at the time of installation to be eligible.

The tax credit applies to, and covers not just the initial purchase of the geothermal heat pump property, but also labor for onsite preparation, assembly, or original system installation; and any piping or wiring required to connect the geothermal system to your home.

What’s not eligible?

The Residential Energy Efficient Property tax credit cannot be used for spending on equipment meant solely for hot tub or pool conditioning, nor on previously used equipment.

What does it mean, “placed in service”?

So says the Internal Revenue Service Code, Section 25: Geothermal heat pump property is placed in service when installation is completed, except when the home is new or reconstructed. Such property is then considered placed in service when the taxpayer takes up residence in the new, or newly renovated house.

How do I claim the credit?

Whether filing independently or with the aid of a tax preparer, the IRS From 5695 should be used to claim the Residential Energy Efficient Property credit.

It is important to note:
For property placed in service during, or after tax year 2009, there is no limit to the amount of credit that may be claimed. The Residential Energy Efficient Property credit can be used to offset regular income taxes, as well as alternative minimum taxes (AMT).

Haven’t yet installed geothermal heat pump property? Call Blanton’s Heating & Air — you’ll thank us later.

Well, what are you waiting for? The Residential Energy Efficient Property credit will be offered to all homeowners who haven’t yet installed geothermal heat pump property, but do between now and the end of next year! Call Blanton’s Heating & Air today about installing a geothermal heat pump in your Fayetteville, North Carolina home; your 2016 tax return will thank us.

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