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Is the 30% credit for installing a geothermal system only used to offset taxes due? If I have paid already do I still get the 30% check?
My withholding will take care of my income taxes but if I were to put in the system and get the 30% tax credit, would I still be able to get the 30% or is it only to offset the taxes.
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Tax credits reduce dollar per dollar the amount of income tax that would otherwise be due. The credit for geothermal equipment is nonrefundable, meaning that you cannot get a refund if the credit exceeds the regular and alternative taxes. You can, however, carry the credit over to 2010 (assuming the equipment was purchased in 2009).
Further information: The credit for qualified geothermal heat pump property is part of the credit for Residential Energy Efficient Property allowed under section 25D of the Internal Revenue Code. Qualified geothermal heat pump property uses the ground or ground water as a thermal energy source for heat or as a thermal energy sink for cooling. The property must also meet the requirements of the Energy Star program in effect when the equipment is purchased. The property where the equipment is installed must be residential property, used by the taxpayer as a residence, and located in the U.S.
Note: The credit for geothermal installations in 2008 and earlier was limited to $2,000. There is no limitation on the credit for installations in 2009 and after. Unless extended by Congress, the credit expires after 2016.
carlaneeleyfreitag
Further information: The credit for qualified geothermal heat pump property is part of the credit for Residential Energy Efficient Property allowed under section 25D of the Internal Revenue Code. Qualified geothermal heat pump property uses the ground or ground water as a thermal energy source for heat or as a thermal energy sink for cooling. The property must also meet the requirements of the Energy Star program in effect when the equipment is purchased. The property where the equipment is installed must be residential property, used by the taxpayer as a residence, and located in the U.S.
Note: The credit for geothermal installations in 2008 and earlier was limited to $2,000. There is no limitation on the credit for installations in 2009 and after. Unless extended by Congress, the credit expires after 2016.
carlaneeleyfreitag
source(s):
Internal Revenue Code Section 25D, 26 U.S.C. sec. 25D, http://www.law.cornell.edu/uscode/search/display.html?terms=section 25D&url=/uscode/html/uscode26/usc_sec_26_00000025---D000-.html
IRS Notice 2009-41, Credit for Residential Energy Efficient Property, http://www.irs.gov/irb/2009-19_IRB/ar08.html
Dsire, Federal Incentives/Policies for Renewables & Efficiency, http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F
Internal Revenue Code Section 25D, 26 U.S.C. sec. 25D, http://www.law.cornell.edu/uscode/search/display.html?terms=section 25D&url=/uscode/html/uscode26/usc_sec_26_00000025---D000-.html
IRS Notice 2009-41, Credit for Residential Energy Efficient Property, http://www.irs.gov/irb/2009-19_IRB/ar08.html
Dsire, Federal Incentives/Policies for Renewables & Efficiency, http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F
tags: equipment, geothermal
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