#  Geothermal Tax Credits 

  
Why not save money today and over the length of your time in your St Louis area home? You can with Geothermal! When you factor in the long term energy savings, tax credits, and utility rebates, geothermal is a great option to consider when looking to replace or install a new HVAC system. Through 2021, the geothermal tax credits are up to 22% of the cost the geothermal system when installed in your St Louis residence.

Frequently Asked Questions about Geothermal Tax Credits:

  1. **What exactly is the difference between a tax deduction and a tax credit?** A tax deduction reduces the amount of your income that is considered taxable by the IRS. A tax credit is taken after the determination of the amount of taxes that you have to pay. Tax credits are dollar for dollar reductions in the amount of taxes you owe, and are the same for everyone, regardless of income level.
  2. **What if my geothermal tax credit amount exceeds my tax liability**? You will not lose any of the remaining balance. The residual amount will be carried forward into future years and applied to that tax liability.
  3. **Can I claim the tax credit if I install a qualified geothermal heat pump in my existing home?** Yes, the tax credit applies to existing residential installations as well as new construction.
  4. **Is there any geothermal equipment not covered under this tax credit?** The tax credit only applies to new “qualified geothermal heat pump property.” Geothermal equipment that does not meet ENERGY STAR requirements effective at the time the equipment is installed is not eligible. Also excluded is equipment used exclusively to heat swimming pools or hot tubs or previously used geothermal equipment. Ask your Hoffmann Brothers Project Manager to ensure the Geothermal Equipment they quote, qualifies for your 30% tax credit.
  5. **Am I eligible for the tax credit if geothermal equipment is installed in my condo?** Possibly. You may be able to claim the tax credit on your share of the condominium association’s geothermal spending. The tax code has specific restrictions, so please consult your tax professional and homeowner’s association for further information.
  6. **Can I get this tax credit if I install a geothermal system at my business location?** There is a separate 10% tax credit available for businesses installing geothermal equipment. If you have a business operating out of your home, consult your tax professional for proper allocation of the residential tax credit.



### Geothermal Heating and Cooling Incentives St Louis

There are tax credits available for both residential and commercial geothermal installations. The tax credits do vary based on the type of application they are installed in. The residential tax credit is available through December 31st, 2021 and is up to 22% of the cost of the geothermal installation price. To learn more about the residential tax credits available for geothermal, visit the Energy Star website for more information. Contact our geothermal specialists as well for more information on geothermal tax credits that are available along with our utility company rebates at (314) 664-3011.

### Geothermal Rebates St Louis

Not only are there tax credits available for up to 22% of the cost of a Geothermal Heat Pump installations, but St Louis area Utility rebate companies are offering great incentives to install Geothermal systems in your St Louis homes. Ameren Missouri is offering up to $2000 when you replace your old heat pump or electric furnace with a Geothermal Heat Pump. Cuivre River is offering $750 per ton for geothermal heat pump installations. There are more Geothermal rebates in St Louis available, just call Hoffmann Brothers at (314) 664-3011 for more information or visit our Rebates and Incentives page.

### Geothermal Contractor St Louis

Hoffmann Brothers wants to provide you with the most energy efficient HVAC system in the most cost effective manner. During our estimate for a standard heating and cooling or geothermal system, we will make sure to include all rebates, incentives and tax credits in your price. You can count on Hoffmann Brothers to ensure you get every dollar to your advantage. Call Hoffmann Brothers for geothermal rebate information, geothermal tax credits, or to request a free estimate at (314) 664-3011 or contact us here.

**The information in this literature is for general information only. The information is provided with the understanding that Hoffmann Brothers is not providing tax, accounting, legal or other professional advice. This material should not be used as a substitute for expert advice from a tax, accounting or legal professional.