Geothermal heat pumps are highly efficient heating and cooling systems that operate cleanly, quietly and economically. If you are considering installing a geothermal heat pump in your Tulsa-area home, remember there are still substantial energy tax credits available from the federal government that will help offset the cost of the system.By investing in geothermal heating and cooling, you are installing a home-comfort system that is astonishingly efficient, returning three or four units of heat for each unit of electricity the system consumes. This sounds like a physical impossibility, but it works because geothermal heat pumps move existing heat rather than burn fuel to generate it.Geothermal systems can slash energy costs by up to 70 percent. System prices vary based on factors such as the type of system and the features of the home where it is installed, but it is not uncommon for geothermal heat pump systems to cost between $10,000 and $20,000.In an effort to make geothermal heating and cooling more accessible, and at the same time promote energy conservation, the U.S. government offers a substantial income tax credit to homeowners who make the switch to geothermal. These credits can be applied directly to a homeowner's income taxes for the year in which the geothermal equipment was purchased and brought into service.Major points to keep in mind about the tax credits include:
Credits amount to 30 percent of the system's cost, with no upper limit.
System must be placed into service by Dec. 31, 2016.
Credits apply to both the cost of the heat pump and the installation.
Credits apply only to equipment for a primary residence or secondary home; rental units do not qualify.
Credits are valid for geothermal systems purchased for either new or existing homes.
Federal tax credits expire in 2016. Check the Database of State Incentives for Renewables & Efficiency for information on other incentives programs for Oklahoma.For more than 30 years, Air Assurance been a leading HVAC sales, installation and service provider to customers in and around Tulsa. Contact us today for more information on geothermal heat pump systems and how one can benefit you.Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). Image courtesy of Shutterstock