Geothermal incentives like the 30% Federal tax credit have been critical to making ground source technology affordable for homeowners across the country. Unfortunately for future buyers that incentive will expire on 31 December 2016. If Congress fails to renew the measure, can the geothermal heat pump market survive?
Geothermal Incentives Countdown (to Destruction?)
So, well, probably not. Let’s get real honest here. A 30% Federal tax credit on purchase cost and installation is chief among numerous geothermal incentives. There’s no doubt about that. The amount you save will shave years off the amount of time it takes for your geothermal heat pump to pay itself off in energy savings.
Who wouldn’t love that?
Everyone, obviously everyone, loves that. The key to remember is that the 30% credit is not necessary to make a geothermal heat pump worth the cost. They’re worth the price anyway given the seemingly perpetual climb of electricity across the country. All the tax credit does is get you saving quicker than you otherwise would. Which is nice, no doubt, but not having that extra boost doesn’t diminish the fact that a geothermal heat pump is still the best way to save, heat, and cool at the same time.
Okay, not literally the same time. A geothermal heat pump won’t actually heat and cool in the same mode. You know what I mean though.
The fact of the matter is that this is not the end of the world. Yes, a 30% Federal tax credit is one heck of a good reason to buy geothermal right now. If you’ve been putting off the purchase, it is officially time to stop doing that. However, if you have to wait until 2017 to get your dream HVAC system, you’ll still be fine. Seriously though, if you want a geothermal unit, buy now because the best of all geothermal incentives is not going to be around much longer.