A Geothermal Heat Pump Can be More Affordable With a Tax Credit

One of the best ways to cut the high cost of keeping your home comfortable all year is with a geothermal heat pump (GHP). Not only are they the most energy efficient way to cool and heat, they’re the most durable. Such a heat pump does cost more than other kinds of HVAC equipment, largely because the installation is much more complex than with other kinds of cooling and heating equipment. 

Homeowners can catch a break, however, if they install a qualifying geothermal system before the end of 2016. A federal tax credit is in force until December 31, 2016, and it allows you to deduct the cost of the system, including iA Geothermal Heat Pump Can be More Affordable With a Tax Creditnstallation, to receive a 30 percent tax credit on the investment.

The credit applies to primary homes and vacation homes, but not rentals. It doesn’t cover the ductwork installation, modifications or an emergency heating coil. Unlike other kinds of energy tax credits, this one has no cap on the amount.

The U.S. government encourages homeowners to choose these systems because they’re so energy-efficient and will pay for themselves in lower conditioning costs. These systems use an underground loop field that’s essential for the heat exchange process. The loops are buried either horizontally or vertically, depending on the yard size and its hydrology and geology. The indoor component of the geothermal heat pump connects to the loop field.

The loop field should last 50 years or more and the indoor components 25 years and better with routine maintenance. There’s no outdoor condenser and all the parts are protected from the elements.

Their efficiency is a result of the stable temperatures deep underground. Since heat pumps work on the heat exchange principle, there’s always enough thermal energy for heating and the ground accepts the excess heat easily from your home in the summer. A GHP doesn’t use combustion fuel for heating, increasing your safety during the heating season.

To learn more about the suitability and the benefits of a geothermal heat pump for your home, contact Cool Power, LLC. We’ve provided outstanding HVAC services for Long Island homeowners since 1975.

Our goal is to help educate our customers in Hauppauge, New York and the Long Island area about energy and home comfort issues (specific to HVAC systems).  For more information about geothermal heat pumps and other HVAC topics, download our free Home Comfort Resource guide.

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