Are the tax credits different for geothermal heat pumps?
Yes, homeowners who install geothermal heat pump systems may be able to claim up to 30% of the installed costs in tax credits in the year the system is placed into service. However, there is no dollar limit to the credit on geothermal heat pumps. The geothermal tax credit also has a longer term, from January 1, 2009 and expires December 31, 2016. What if I install a furnace that meets the 95% AFUE standard, but with a central air conditioner below the standard? Can I still claim the full $1,500? Homeowners can claim 30% of the final installation costs up to $1,500 associated specifically with the 95% AFUE furnace. Should the installation costs associated with the furnace not reach $5,000, 30% of the installation cost can still be claimed and the difference between that amount and the $1,500 cap can be applied to any other qualifying improvements. Can I use the entire $1,500 tax credit on a single qualifying home improvement? Yes. Previous per-appliance caps that limited homeowners to j
