North Carolina’s Renewable Energy Tax Credit
Have you been contemplating installing a geothermal heating and cooling system for your home? If so, now is the time to act! The state of North Carolina’s Renewable Energy Tax Credit is set to end 12/31/15. Which is only about 2 months away! How will the end Renewable Energy Tax Credit affect the installation of your geothermal system? Review this article to learn more about the state Renewable Energy Tax Credit.
First, to know how the ending of the Renewable Energy Tax Credit will affect the installation of your geothermal system, you have to understand what the Renewable Energy Tax Credit is. The Renewable Energy Tax Credit is a state incentive to encourage homeowners to use more energy efficient technologies by offering tax credits. Each technology has a maximum incentive that varies from each other. For a geothermal heat pump, you will receive up to 35% of the cost of the product capped at $8,400. With the loss of the state Renewable Energy Tax Credit, it will affect the price of your geothermal system. That doesn’t mean you should dismiss geothermal heating and cooling systems as an option though.
The uncapped federal tax credit of 30% for residential geothermal systems is still active throughout 2016. The initial cost of installing a geothermal system to your home can be a major expense. After 2015 the state Renewable Energy Tax Credit won’t be available. However, the energy savings and the federal tax credit still makes installing a geothermal heat pump well worth the cost.
Geothermal Benefits
What are some benefits of a geothermal heating and cooling system?
- Can save up to 70% on your heating and cooling costs.
- Have an average lifespan that exceeds 24 years (most other systems last 10-15 years).
- Uses no fossil fuels and gives off no carbon dioxide.
- Have a 30% federal tax credit with no maximum credit set to end December 2016.
As you can see, even with the loss of the state Renewable Energy Tax Credit geothermal systems are still a great option. If a geothermal system is something you’re considering call our office to have a complimentary in home evaluation today. You have until December 31, 2015 to take advantage of the state Renewable Energy Tax Credit and save up to $8,400 in addition to the savings from the federal tax credit!
For other technologies that qualify for the state Renewable Energy Tax Credit, or for more information visit the Database of State Incentives for Renewables & Efficiency website. Or, you can always contact our office at (910) 799-6611 with any questions or concerns.
