Incentives are one of the best ways for Oklahoma homeowners to save even more when they make energy efficiency upgrades to their homes. Not only do you save money in the long run by spending less on heating and cooling costs, but you reduce your upfront investment as well, helping you recoup your money more quickly and start your long-term savings sooner.
If you’re looking for an energy-efficient HVAC upgrade, there aren’t any greater savings to be had than with geothermal. And luckily, one of the best incentives for geothermal, a federal tax credit, was recently extended. Here are the details you need to know about what this extension means and how to maximize your savings when you upgrade to geothermal.
WHY ARE GEOTHERMAL HEAT PUMPS SO ENERGY EFFICIENT?
Geothermal heat pumps take advantage of the fact that a few feet under the surface of the ground, the temperature of the earth is surprisingly consistent year-round, no matter how hot (or cold) it is on the surface. Geothermal heat pumps extract heat during the cold months of the year to warm your home. In the summer, the process is reversed, and heat from inside your home is transferred out into the ground to keep you cool and comfortable inside.
Geothermal heat pumps are all-electric and because they don’t create heat—they simply move it from one place to another—they’re incredibly energy efficient. According to the Department of Energy, using geothermal energy can reduce your energy bills by up to 65% compared to a more conventional HVAC system!
AN UPDATE ON THE GEOTHERMAL FEDERAL TAX CREDIT FOR 2021
For the last few years, home and business owners have been able to take advantage of a substantial federal tax credit when they installed geothermal loop energy systems. In 2020, the law allowed you to take a credit on your federal tax liability equal to 26% of your total installation costs—thousands of dollars in savings for the average project! But the tax credit was scheduled to step down to 22% in 2021, and then to be completely eliminated for residential installations by 2022.
Instead, legislation passed at the very end of 2020 has extended the geothermal federal tax credit, giving you more time to take advantage of higher savings. Here is the new schedule:
- 2021 & 2022: 26%
- 2023: 22%
- 2024: PERMANENT 10% CREDIT FOR COMMERCIAL INSTALLATIONS, CREDIT IS ELIMINATED COMPLETELY FOR RESIDENTIAL
LEARN MORE ABOUT GEOTHERMAL WITH DEHART
There aren’t too many opportunities for a second chance at such significant savings, so if you’re looking to upgrade to a more efficient, money-saving HVAC system, talk to DeHart today. We’ll find out more about the ground your house is built on to help us determine the right-sized and designed geothermal install for your Oklahoma home, and walk you through the upfront costs as well as the different incentives you may qualify for, including the federal geothermal tax credit and even local utility rebates and financing options.