Hey Manassas, VA Homeowners: Did You Know You Might Be Eligible for a Residential Energy Efficient Property Credit?

Did you know? You just might be eligible for a tax credit on your 2014 federal income tax return.

Did you make your home more more energy efficient last year? I might be talking to you!

The Internal Revenue Service added geothermal heat pumps to section 25D of its Code in October 2008. As a result, homeowners who spent the time and money to install qualifying Residential Energy Efficient Property (placed in service during the period between 2008 and 2016) can claim a 30 percent tax credit on all related expenses.

Here’s what Manassas, VA homeowners like you need to know.

What’s eligible?

Condo or townhome; single-family or mobile home; first or second home, the Residential Energy Efficient Property tax credit applies to yours, as long as they are located within the United States, and are used primarily as a residence. But what of the geothermal heat pump property itself? That which qualifies for the Residential Energy Efficient Property Credit uses stored solar energy from the ground to heat and cool your Manassas, North Carolina-area home. Additionally, such property much meet Energy Star® requirements in effect at the time of installation to be eligible.

Even better: The tax credit also applies to various installation-related expenses — labor for onsite preparation and assembly, as well as any necessary piping and wiring — and not just the initial purchase of the geothermal heat pump property.

What’s not eligible?

The Residential Energy Efficient Property tax credit does not, and will never apply to spending on equipment meant solely for hot tub or pool conditioning, nor on previously used equipment.

When is geothermal heat pump property considered “placed in service”?

So says the Internal Revenue Service Code, Section 25: Geothermal heat pump property is placed in service when installation is completed, except when the home is new, or re-constructed. Such property is then considered placed in service when the taxpayer takes up residence in the new, or newly renovated house.

How do I claim the credit?

The IRS From 5695 must be used to claim the Residential Energy Efficient Property credit.


Therei s no limit to the amount of credit that may be claimed on property placed in service during, or after tax year 2009. Thereafter, the Residential Energy Efficient Property credit can be used to offset regular income taxes, as well as alternative minimum taxes (AMT).

Haven’t yet installed geothermal heat pump property? Call My Plumber!

Don’t wait any longer! The Residential Energy Efficient Property credit will be available to all homeowners who haven’t yet installed geothermal heat pump property, but do between now and the end of tax year 2016. Call My Plumber today about installing a geothermal heat pump in your Manassas, Virginia home.

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