Federal Geothermal Tax Credits
The 30% residential and 10% commercial tax credit on geothermal heating, cooling, and hot water systems are back! For geothermal systems placed in service from Jan. 1, 2017 through 2019, the credit is 30% of the cost of the system, and then it drops to 26% for 2020 and 22% for 2021. Geothermal tax credits phase-out and expire on Dec. 31, 2021.
Iowa State Geothermal Tax Credits
Geothermal heat pumps installed on residential property in Iowa are eligible for a tax credit equal to 20% of the Federal Tax Credit. Because the federal tax credit is set at 30%, the state tax credit is equal to 6% of the system cost. Under the legislation, a “qualified geothermal heat pump property” means any equipment that uses the ground or groundwater as a thermal energy source to heat the dwelling unit of the taxpayer or as a thermal energy sink to cool such dwelling unit, which equipment meets the requirements of the federal energy star program in effect at the time that the expenditure for such equipment is made.
Solar System Tax Credits
Federal and state tax credits are currently available for homeowners and businesses to promote energy efficiency, encourage the use of renewable energy sources, and support efforts to conserve energy and lessen pollution.
Currently, Iowa’s upfront solar tax credit provides a match of the federal incentive. Starting in 2016, the match is 50%. The combined Iowa and federal incentives total 45% which offsets nearly half of the upfront costs associated with a new solar system. To request a Solar Energy System Tax Credit, you are required to complete an application. The application requesting an award for installations on or after January 1, 2016 must be received by May 1 following the year of the installation. Some restrictions apply.
Lennox Spring Rebates Up To $1,700
Receive up to $1,700 in Lennox Rebates when you purchase a qualifying Lennox® home comfort system that includes a gas furnace or blower coil, an air conditioner or heat pump and thermostat. Rebate offer is valid March 12th, 2018 – June 15th, 2018.
Depending on where you live, you may qualify for energy rebates through your utility company when you purchase a high-efficiency home comfort system. So, on top of the money you save in the form of federal tax credits, you can potentially pocket a return from your local electric utility provider.