Scott Brothers NC: Boone air conditioner repair, furnace repair and geothermal specialists
Expanded Geothermal Tax Credits
Homeowners who install geothermal heat pump systems may be able to claim up to 30% of the installed costs in tax credits in the year the system is placed into service. the $2,000 tax credit limit has been removed. The geothermal tax credit has a longer term, form January 1, 2009 and expires December 31, 2016.
Lifetime Limit Removed
Homeowners that previously claimed tax credits in 2006 or 2007 are eligible for the full $1,500 limit.
A homeowner may use the entire $1500 in tax credits for installing a single appliance, such as a qualified furnace, air conditioner, heat pump or hot water heater. If the home owner does not use all of the $1500 they can "bank" the remaining available tax credit for other qualified improvements.
What's the difference between a tax credit and a tax deduction?
As a tax credit applies against the taxpayers' liability. A tax deduction applies against a taxpayer's income. lowering the adjusted gross income and possibly moving the taxpayer to a lower tax bracket. Tax credits have a greater benefit to a taxpayer.