Although a geothermal heat pump (GHP) requires a larger upfront investment, it’s the most energy efficient and durable heating and cooling system available. It’s also the only HVAC system available that currently carries a hefty federal tax credit for its purchase and installation. The tax credit offsets its higher initial cost, which helps homeowners more quickly realize the savings these systems provide each time they run.
In this region, it makes sense to use a GHP because the climate requires a fair amount of winter heating and summer cooling. Like air-source heat pumps, geothermal systems extract heat from the outdoors for warmth, or remove it from indoor air in the summer and deposit it outdoors. Unlike air-source systems, a GHP extracts and replaces heat from the ground, where temperatures are stable and mild all year long.
The tax credit lets you claim 30 percent of the GHP’s purchase and installation. There is no limit on the amount that you can claim because the cost of these systems varies by the size of the home and the actual cost of its installation.
These conditions apply to qualify for the tax credit:
- It must be installed in a new or existing primary or secondary home. Rental properties do not qualify.
- The GHP must meet or exceed the minimum guidelines for the Energy Star program.
- The installation must be complete by December 31, 2016.
- Homeowners must submit Form 5696.
How to Get Started
GHPs must be installed by a licensed HVAC contractor who will conduct a geological analysis of your yard to determine the size for the underground loop field where the heat exchange process occurs. Next, they will use Manual J software to find the right size for the heat pump itself and its ductwork distribution. The contractor will work with you to select the most suitable qualifying equipment for your home.
To learn more about the savings, benefits and the tax credit a geothermal heat pump offers, contact Davis Air Conditioning. We provide top-notch HVAC services for southwestern Oklahoma homeowners since 1976.
Our goal is to help educate our customers in the Lawton and Duncan, Oklahoma area about energy and home comfort issues (specific to HVAC systems).
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