I'm confused by what this website is telling me about the tax-credit for a geothermal heat pump:
A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below.
So far, it sounds like there is a 30% personal tax credit. Further down the page, there is a section specific to geothermal heat pumps, that says:
Geothermal heat pumps
- 30% for systems placed in service by 12/31/2019
- 26% for systems placed in service after 12/31/2019 and before 01/01/2021
- 22% for systems placed in service after 12/31/2020 and before 01/01/2022
- There is no maximum credit for systems placed in service after 2008.
- Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.
- The geothermal heat pump must meet federal Energy Star criteria.
- The home served by the system does not have to be the taxpayer’s principal residence.
So, you can see the first bullet seems to confirm that it's a 30% tax credit for systems installed by 12/31/2019.
But, then the 5th bullet throws me off. It says:
Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.
What does that 5th bullet mean? Doesn't it contradict the first bullet? I'm just trying to understand what the current tax credit is? Can anyone explain that to me?