The American Taxpayer Relief Act of 2012 passed in January 2013 retroactively extends tax credits for homeowners replacing heating and cooling equipment for their primary residence with qualifying, high-efficiency geothermal heat pumps. Tax credits are available for 2013 and retroactive to January 1, 2012. To qualify for a federal tax credit , there are efficiency requirements of 15 SEER / 12.5 EER / 8.5 HSPF for geothermal heat pumps. Geothermal heat pump purchase must be for your principal residence and be “placed in service” between January 1, 2012 and December 31, 2013. “Placed in service” means when the original installation of the geothermal heat pump is completed. Geothermal heat pumps placed in service starting in 2009 are eligible for a tax credit equal to 30 percent of their installed cost, with no maximum.
