Geothermal Federal Tax Incentives Invisible Heating & Cooling
The federal tax credit amount is scheduled to decrease in 2023, so act now for the most savings!
26%
2020 | 2021 | 2022 Tax Credit
22%
2023 Tax Credit
BoschHeatingAndCooling.com
Residential Geothermal Tax Credit Information1
The United States Tax Code was revised to reinstate the tax credit available to consumers related to the installation of geothermal heat pumps retroactively. As a result, consumers purchasing qualified systems in 2020, 2021, and 2022 can take a one-time tax credit equal to 26% of the investment in the geothermal system, including installation costs, without a cap. The one-time tax credit will be reduced to 22% for systems purchased in 2023.
The Energy Credit History
In February 2018, the 30% geothermal federal tax credit was reinstated through the end of 2019. Property is usually considered to be placed in service when installation is complete and equipment is ready for use. However, if the system is part of the construction or renovation of a house, it’s considered placed in service when the taxpayer takes residence in the house. In December 2020, the 26% geothermal federal tax credit was extended through the end of 2022 as part of the Consolidated Appropriations Act. The same requirements apply to the extension of current tax credit.
What’s Eligible
Geothermal equipment that uses the stored solar energy from the ground for heating and cooling and that meets ENERGY STAR requirements at the time of installation is eligible for the tax credit. Covered expenditures include labor for on-site preparation, assembly, or original system installation and for piping or wiring to connect a system to the home. The structure must be located in the United States and used as a residence by the taxpayer, although primary residency isn’t required. In fact, if geothermal is installed in more than one home, there’s no limitation on the number of times the credit can be claimed.
What's Not Eligible
The credit can’t be claimed for spending on equipment used solely for hot tub or pool conditioning, nor on previously used equipment. Rental home installations also cannot be claimed. As of November, 2013, electric strip heat and ductwork distribution systems are no longer included in the 30% calculation.
How to Claim The Credit
Use IRS Form 5695 to claim the Residential Energy Efficient Property Credit. For property placed in service after 2009 there’s no limit on the credit amount. The tax credit can be used to offset both regular income taxes and alternative minimum taxes (AMT). If the federal tax credit exceeds tax liability, the excess amount may be carried forward into future years. Spending on geothermal heat pump property adds to your home’s cost basis but also must be reduced by the amount of the tax credit received.
A Qualified System Must Meet The Following Requirements ▶ Installed after Jan 1, 2020 and before Dec 31, 2023.2 ▶ According to the Internal Revenue Service (IRS) guidance, the Federal tax credit is tied to the ENERGY STAR specification that is in effect at the date of installation.
▶ Installed in a residence (not limited to primary residence).3 ▶ For purposes of ENERGY STAR qualification, geothermal heat pumps include the following: open loop, closed loop, and DGX and are powered by a single phase current.
Act Now For The Most Savings! ▶ ▶ ▶ ▶ ▶ ▶ ▶
26% of total system cost in 2020, 2021, 2022 22% of total system cost in 2023 No limit to credit amount Can be used to offset AMT tax Can be used in more than one year Can combine with solar and wind tax credits Can combine with energy efficiency upgrade credits
Eligible Bosch Geothermal Systems Please complete the form below, and keep this for your records. We advise consulting with your tax advisor for further information on the eligibility of our installation for the tax credit. Below is a listing of Bosch products manufactured by FHP Manufacturing Company, 601 NW 65th Court, Ft. Lauderdale, FL 33309 that meet the ENERGY STAR requirements.
BP012-1HZC
Bosch-Geo
Closed Loop Water-to-Air
SM048-1CS (with BVA-48*/BMAC48*)
Bosch-Geo
Closed Loop Water-to-Air
BP012-1HZC
Bosch-Geo
Open Loop Water-to-Air
SM048-1CS (with BVA-48*/BMAC48*)
Bosch-Geo
Open Loop Water-to-Air
BP018-1HZ/VT
Bosch-Geo
Closed Loop Water-to-Air
SM060-1CS (with BVA-60*/BMAC60*)
Bosch-Geo
Closed Loop Water-to-Air
BP018-1HZ/VT
Bosch-Geo
Open Loop Water-to-Air
SM060-1CS (with BVA-60*/BMAC60*)
Bosch-Geo
Open Loop Water-to-Air
BP024-1HZC/VTC
Bosch-Geo
Closed Loop Water-to-Air
TW025-1
Bosch-Geo
Closed Loop Water-to-Water
BP024-1HZC/VTC
Bosch-Geo
Open Loop Water-to-Air
TW025-1
Bosch-Geo
Open Loop Water-to-Water
BP030-1HZN/VT
Bosch-Geo
Closed Loop Water-to-Air
TW035-1
Bosch-Geo
Closed Loop Water-to-Water
BP030-1HZ/VT
Bosch-Geo
Open Loop Water-to-Air
TW035-1
Bosch-Geo
Open Loop Water-to-Water
BP036-1HZ/VT
Bosch-Geo
Closed Loop Water-to-Air
TW049-1
Bosch-Geo
Closed Loop Water-to-Water
BP036-1HZ/VT
Bosch-Geo
Open Loop Water-to-Air
TW049-1
Bosch-Geo
Open Loop Water-to-Water
BP042-1HZN/VT
Bosch-Geo
Closed Loop Water-to-Air
TW061-1
Bosch-Geo
Closed Loop Water-to-Water
BP042-1HZN/VT
Bosch-Geo
Open Loop Water-to-Air
TW061-1
Bosch-Geo
Open Loop Water-to-Water
BP048-1HZN/VT
Bosch-Geo
Closed Loop Water-to-Air
TW122-1
Bosch-Geo
Closed Loop Water-to-Water
TW122-1
Bosch-Geo
Open Loop Water-to-Water
BP048-1HZN/VT
Bosch-Geo
Open Loop Water-to-Air
CE025-1HZ/VT/CF
Bosch-Geo
Closed Loop Water-to-Air
CE025-1HZ/VT/CF
Bosch-Geo
Open Loop Water-to-Air
CE035-1HZ/VT/CFN
Bosch-Geo
Closed Loop Water-to-Air
CE035-1HZ/VT/CFN
Bosch-Geo
Open Loop Water-to-Air
CE049-1HZ/VT/CF
Bosch-Geo
Closed Loop Water-to-Air
Installing Contractor Information
CE049-1HZ/VT/CF
Bosch-Geo
Open Loop Water-to-Air
Name:
_________________________________________
CE061-1HZ/VT/CFN
Bosch-Geo
Closed Loop Water-to-Air
CE061-1HZ/VT/CFN
Bosch-Geo
Open Loop Water-to-Air
Address:
_________________________________________
CE071-1HZ/VT/CFN
Bosch-Geo
Closed Loop Water-to-Air
_____________________________________________________________
CE071-1HZ/VT/CFN
Bosch-Geo
Open Loop Water-to-Air
Phone:
SM024-1HZ/VT
Bosch-Geo
Closed Loop Water-to-Air
SM024-1HZ/VT
Bosch-Geo
Open Loop Water-to-Air
Installation Date: _________________________________________
SM036-1HZ/VT
Bosch-Geo
Closed Loop Water-to-Air
SM036-1HZ/VT
Bosch-Geo
Open Loop Water-to-Air
SM048-1HZ/VT
Bosch-Geo
Closed Loop Water-to-Air
SM048-1HZ/VT
Bosch-Geo
Open Loop Water-to-Air
SM060-1HZ/VT
Bosch-Geo
Closed Loop Water-to-Air
SM060-1HZ/VT
Bosch-Geo
Open Loop Water-to-Air
Geothermal Open Loop System
SM070-1HZ/VT
Bosch-Geo
Closed Loop Water-to-Air
Water-to-Water 20.1 EER and 3.5COP or greater*
SM070-1HZ/VT
Bosch-Geo
Open Loop Water-to-Air
Water-to-Air 21.1 EER and 4.1 COP or greater*
SM024-1CS (with SM024-1AH/AV)
Bosch-Geo
Closed Loop Water-to-Air
SM024-1CS (with SM024-1AH/AV)
Bosch-Geo
Open Loop Water-to-Air
Model No.: _________________________________________________
SM036-1CS (with SM036-1AH/AV)
Bosch-Geo
Closed Loop Water-to-Air
SM036-1CS (with SM036-1AH/AV)
Bosch-Geo
Open Loop Water-to-Air
SM048-1CS (with SM048-1AH/AV)
Bosch-Geo
Closed Loop Water-to-Air
SM048-1CS (with SM048-1AH/AV)
Bosch-Geo
Open Loop Water-to-Air
SM060-1CS (with SM060-1AH/AV)
Bosch-Geo
Closed Loop Water-to-Air
SM060-1CS (with SM060-1AH/AV)
Bosch-Geo
Open Loop Water-to-Air
SM024-1CS (with BVA-24*/BMAC24*)
Bosch-Geo
Closed Loop Water-to-Air
SM024-1CS (with BVA-24*/BMAC24*)
Bosch-Geo
Open Loop Water-to-Air
SM036-1CS (with BVA-36*/BMAC36*)
Bosch-Geo
Closed Loop Water-to-Air
SM036-1CS (with BVA-36*/BMAC36*)
Bosch-Geo
Open Loop Water-to-Air
__________________________________________
Geothermal Closed Loop System Water-to-Air 17.1 EER and 3.6 COP or greater* Water-to-Water 16.1 EER and 3.1 COP or greater*
Model Number: __________________________________________
AHRI Reference No.: _______________________________________
_____________________________________________________________ Vitor Gregorio Regional President Bosch Thermotechnology Corp.
Under penalty of perjury, I declare that I have examined this certification statement and believe the facts presented are true, correct, and complete. *Note: The IRS is responsible for the implementation and administration of tax credits. Bosch expressly disclaims all liability for damages of any kind arising out of a taxpayer’s claim for an energy efficiency tax credit or the unauthorized alteration of the data listed in this Certification Statement. Please consult your tax expert on any tax credit to which you may be entitled. This information is subject to change without notice.
About Bosch Bosch Group The Bosch Group is a leading global supplier of technology and services in the areas of Automotive, Industrial Technology, Consumer Goods and Building Technology. The company was founded in Stuttgart, Germany, in 1886 and presently has more than 440 subsidiaries and is represented in over 150 countries. In the U.S., Canada and Mexico, the Bosch Group manufactures and markets automotive original equipment and aftermarket solutions, industrial drives and control technology, power tools, security and communication systems, packaging technology, thermotechnology, household appliances and software solutions. The Bosch Group’s products and services are designed to improving quality of life by providing innovative and beneficial solutions. In this way, the company offers technology worldwide that is “Invented for life.” Additional information is available online at boschheatingandcooling.com and bosch.ca.
Bosch Thermotechnology in North America Bosch Thermotechnology is a leading source of high quality water heating and comfort systems. The company offers gas tankless, electric whole house and point-of-use water heaters, Bosch and Buderus floor-standing and wall mounted boilers, Bosch and FHP geothermal, water-source and air-source systems as well as controls and accessories for all product lines. Bosch Thermotechnology is committed to being Simply Smart by offering products that work together as integrated systems that enhance quality of life in an ultra-efficient and environmentally friendly manner. For more information, visit boschheatingandcooling.com.
Bosch Thermotechnology Corp. Watertown, MA | Londonderry, NH | Ft. Lauderdale, FL General Inquiries: 1-866-642-3198
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www.BoschHeatingAndCooling.com (1) References: www.ENERGYSTAR.gov and www.IRS.gov (2) Products installed between Jan 1, 2020 and before Dec 31, 2023 are eligible for a tax credit. (3) Not applicable to rental properties and the property must be in the US.
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