Hi,

We have just installed a 3-ton geothermal system (they are completing the work today) and the same company also did spray foam the attic and crawl space. We will also be blowing insulation in the walls and replacing the windows - the transaction will go through the same company who will also do the installation of the windows.

Now, here is a question: Does anyone have experience with filing taxes and getting the 30% tax credit on the entire package (geothermal, insulation, windows)?

A bit of background. We have a 3500 sq feet house built in 1957 with inadequate insulation in the attic, no insulation in the walls and older leaky windows. If we did not do any improvements, we would need a 5-ton system. With all the improvements, we have a 3-ton system. In other words, we paid $29,000 for just the 3-ton system and we would have ended up paying around $40,000 for a 5-ton system (the increase is largely due to extra drilling cost). Is this a good argument for the Feds to have the entire package with 30% tax credit? Also, after new windows the total cost will be more like $50,000, which is more than what we would have paid for a 5-ton system. Would claiming $50,000 be unreasonable and should we instead claim $40,000 (a comparable cost of the 5-ton system)?

Thank you for all advice!

The tax credits for insulation and windows has been lowered this year. The total installed cost of the Geothermal may be eligible for the 30 % tax credit.

I doubt the Feds would allow you to claim the windows and insulation as "installed cost" of the Geo.

Bergy

Talk to an Accountant.

I think one can argue insulation employed to lower geo load is part of the design or "property". How far you can push that may be dependant on the strength of your stomach...
j

Posted By joe.ami on 31 Jul 2011 11:23 AM
How far you can push that may be dependant on the strength of your stomach...

...and wallet.  Interest and penalties can be significant.  I agree that you should talk to a tax professional.