Environmentally Conscious Real Estate of Cincinnati

With the recent onset of winter, most of us are feeling the chill and thinking about the efficiency of our furnaces.  Or at least I do…  I recently replaced my 40 year old Williamson furnace with a new 95% efficiency one.  It was by far one of the best green decisions I have made on my house.  I’m warmer and happy and Duke gave me a 200$ credit for purchasing this piece of high efficiency equipment.  Its a great little perk!  

However, had I gone GEOTHERMAL, I could have received a 2000$ tax credit.  Of course the system would have cost 4x what my gas furnace cost, but the long term savings and benefits most of the time justify the extra price.  You’re pay back on these types of systems are HUGE!  This tax credit is available from October 3, 2008 through December 31, 2016.

Here are the details:

A new tax credit is now available for home and commercial building owners who install geothermal heating and cooling systems through the Energy Improvement and Extension Act of 2008 (H.R. 1424). H.R. 1424 offers a one time tax credit of 30% of the total investment (maximum of $2,000 for a single residence) for all residential ground loop or ground water geothermal heat pump installations. A credit of 10% of the total investment is also available (no maximum) for a commercial system installation.

To qualify, the systems must meet or exceed EnergyStar requirements and be installed after December 31, 2007. Owners can file for the credit by completing the Renewable Energy Credits subsection on their tax return forms for 2008. For taxpayers that are subject to the Alternative Minimum Tax, they can claim the credit on their taxes for the following year. No proof of purchase will be required; however, in case of an audit, owners are encouraged to keep a detailed invoice of their purchase on file. The contractor who sold and installed the product should list the purchase as a “Geothermal Heat Pump” on the invoice and that it “Exceeds requirements of Energy Star program currently in effect”.

For more information, visit http://thomas.loc.gov or contact your local tax professional.
Also be sure to check out all of the OHIO renewable tax credits and incentives! http://www.dsireusa.org/library/includes/map2.cfm?CurrentPageID=1&State=OH&RE=1&EE=1

Fortunately geothermal was never an option for me, I live on a hill and they can’t get the equipment up to the top of the hill.  So my conscious is clear and I will continue to love my new furnace.