Photo Credit: Pictures of Money
Installing a geothermal heat pump in South Carolina just got a little more affordable. On February 16th South Carolina Governor Nikki Haley signed bill H3874 into law. This new law provides a tax credit to any homeowner or business that installs a geothermal heat pump system. The law is retroactive and applies to all installations that took place after January 1st, 2016.
Your Geothermal Heat Pump Tax Credit
The tax credit in question is an income tax credit equal to 25% of the installation’s cost. The homeowner or business owner can claim up to $3,500 per year or 50% of the homeowner’s overall tax liability. The tax credit cannot be claimed before the installation is complete and unused portions of the tax credit are carried forward up to ten years for future use.
Since most geothermal heat pump installations can cost in excess of $20,000, a 25% tax credit could equal $5,000 or more in potential savings for homeowners and building owners. This will not only make geothermal a more competitive product against traditional heating options like furnaces and boilers but will also help stimulate the local economy and boost revenues for local small business (there are 17 geothermal heat pump businesses listed in the South Carolina Geo-Exchange Directory).
Learn how to use geothermal heat pumps to lower your heating and cooling bills by downloading our Ebook: Retrofitting for Improved Heating and Cooling.