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Air Perfect is an approved geothermal contractor by the CCEF, as well as an accreditated geothermal installer by IGSHPA #21150-1209

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Information Links:

Energystar - Tax Credits
Database of State Incentives for Renewables & Efficiency (DSIRE)
CT Clean Energy Options
Connecticut Clean Energy Fund
CT Energy Info

Geothermal Heat Pump Tax Credit

A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for onsite preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit can be carried forward until 2016, but it is unclear whether the unused tax credit can be carried forward after then. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below.

Geothermal heat pumps

There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service in 2008.
Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.
The geothermal heat pump must meet federal Energy Star program requirements in effect at the time the installation is completed.
The home served by the system does not have to be the taxpayer’s principal residence.

Established by the federal Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 (H.R. 1424) extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016, the ability to take the credit against the alternative minimum tax, and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009 (H.R. 1: Div. B, Sec. 1122, p. 46), which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008.

Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies.

2011 Federal Tax Credit Extension

Up to $500 in Rebates

Turn to the Experts for Money-Saving Comfort

There are a lot of reasons why homeowners nationwide turn to the experts at Carrier for their indoor comfort needs. Comfort. Innovation. Reliability. Carrier Dealer/Experts. We have developed a worldwide reputation for delivering superior indoor comfort technology that truly stands out from the competition, including our remarkable Infinity® System. In addition, we offer a wide variety of products that not only meet the requirements for the Federal Tax Credit for Residential Energy Property Expenditures, they can provide years of substantial savings on monthly energy bills.

Here are the details:

How the Program Works

As part of an effort to reduce dependence on foreign sources of energy, the federal government provides tax credits to help offset the costs of making energy efficiency improvements to your home. This program has changed somewhat for 2011 to reduce credits while still providing incentives to homeowners.

2011 Changes to Federal Tax Credits Available for Qualifying Residential Systems

Federal tax credits on qualifying, high-efficiency HVAC equipment have been modified and extended through December 31, 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This program differs from the program effective in 2009-2010 in the following ways:

The maximum amount an eligible homeowner may receive in tax credits for purchasing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, is now $500.
The $500 cap is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2010. If you have already claimed credits of $500 or more from improvements made prior to 2011, you will be unable to claim new credits for improvements made during 2011.
All furnaces and boilers, whether natural gas, propane or oil, must have an AFUE of 95 or above to be eligible for the credit.
The credit is now equal to an amount not to exceed:

Maximum Tax Credit Available	Product Type	Efficiency Requirements
$50	Any advanced main air circulating fan	*See below
$150	Natural gas, propane, oil furnace or boiler	95% AFUE
$300	Split system air conditioner	16 SEER / 13 EER
$300	Split system heat pump	15 SEER / 12.5 EER / 8.5 HSPF
$300	Package air conditioner	14 SEER / 12 EER
$300	Package heat pump	14 SEER / 12 EER / 8 HSPF
$300	Package gas / electric	14 SEER / 12 EER

*Electricity use of no more than 2% of the total energy use of the furnace

Geothermal system tax credits are unaffected by these changes and remain in place as is through 12/31/2016.

Note: this bulletin is for discussion purposes only and is general in nature. This is not to be considered tax advice.
See your tax professional to determine how these credits would apply in your circumstance.