Saving Energy - Custom Homes in Raleigh NC

House and Senate Pass Geothermal Tax Credit

For anyone considering a geothermal heating and cooling system, this is good news! 

Federal tax credits for energy efficient home improvements or construction were originally established by the Energy Policy Act of 2005.  However, most of those tax credits expired on December 31, 2007.

The "Bailout Bill" just passed by the House and Senate and signed into law by President Bush included something called the "Extension Act of 2008" (H.R. 1424, Division B), which extended, and improved, tax credits on a variety of energy saving features like solar power and geothermal heating.

Like the solar power section of the bill, the Geothermal Tax Credit has been extended 8 years, and will not expire until 2016.

Geothermal Tax Credit Increases

The geothermal tax credit was originally just $300, but has now been extended to $2000, with possible increases available to homes owned by more than one person. 

Homeowners can file for the geothermal tax credi by completing the Renewable Energy Credits subsection on their tax return forms for 2008. 

Currently no proof of purchase is required to be submitted with tax paperwork, however in case of audit, homeowners are encouraged, as always, to keep detailed invoices in their permanent files.

A geothermal contractor who sells and installs geothermal systems should note the purchase as a "Geothermal Heat Pump" on the invoice, and detail that it "Exceeds requirements of Energy Star program currently in effect".

Renewable Energy

If you're interested in finding out more about renewable energy sources for your new home, here's some great places to get started in the Raleigh area.

Geothermal Systems - Heating and Cooling Using the Earth - How Do They Work, and How Much Do They Cost?

Solar Water Heaters - How Do They Work and How Much Do They Cost

Southern Energy Management - Solar Photovoltaic Systems

Or contact us - we'll send you printable materials and information on energy savings, cost and more.

Read the full articles on the tax credit extension:

Lawmakers Approve Energy Tax Credits, Bailout

Wind, Solar Tax Credits Extended in $700 Billion Bail-Out

Find out more about new homes with water and energy saving features:

Save Energy
Save Water
Mother-in-Law Suites
ADA and Wheelchair Accessible Homes
Find Out More About Building On Your Lot