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Ground heat pumps to keep tax credit
Geothermal heat pumps are now expected to retain a 40% green tax credit this year
GEOTHERMAL heat-pumps (green energy installations for getting heat from the ground) are now expected to retain a 40% green tax credit this year as opposed to being slashed to 25%.
The government had said heat pumps would have the credit level reduced this year, but an exception for geothermal ones is being debated, as opposed to air to water ones (another kind, air to air, attracts no credits).
The state is also considering holding off from a similar reduction on credits for wood-burning boilers in cases where one is installed to replace an old one.
The credits, for energy-saving or producing home improvements, relate to a part of the price which can be deducted from income tax (the cost of labour is usually excluded.)
They will relate to purchases this year and are deducted from 2010 income tax, declared in 2011.
Further changes could include dropping 25% credits for double glazing or for condensing boilers to 15%.
Information can be obtained from the tax helpline on tel: 08 10 46 76 87.
Connexion also publishes a helpguide on these tax credits for environmentally-friendly products.