30% tax credit for homeowners who install geothermal heat pump systems in 2009 and later years. For systems placed in service in 2008, the $2,000 lilmit still applies So, for example, if a homeowner pays $15,000 for a geothermal heat pump system installed in 2009, a tax credit of $4,500 could apply.http://www.irs.gov/pub/irs-pdf/f5695.pdf Line 18 on the form is where you enter “Qualified geothermal heat pump property costs”, Line 19 is where you multiply costs by 30%, and Line 20 displays the $2,000 “Maximum credit amount” for 2008.If you use TurboTax, look for the “Home Energy Credits” topic under Personal Deductions and Credits for Your Home. TurboTax provides an input box to enter the amount you paid for Geothermal heat pump property in 2008. As usual, contact your tax professional for applicability to your specific situation.
For systems placed in service in 2008, use IRS 2008 Form 5695 for the Residential Energy Efficient Property Credit to claim the $2,000 tax credit for Energy Star geothermal heat pumps. You can view and download the form at the following link: