We currently own two homes. Our son is living in the second and will be purchasing the it for his family later this year. The oil furnace heat exchanger cracked, and a new unit or a geothermal heat pump system must be installed.

Since we, his parents, own the property at this time while the work will be done (possibly with our money), will we get all of the advantages of the grants, tax credits and rebates for this second home? Will we get all of the same advantages installing a geothermal heat pump system in our home, too?

Homeowner in Pasadena, MD (Posted on April 30, 2010)

EnergySavvy.com

Certain eligibility requirements may restrict you from receiving rebates on the work for both homes. For example, the federal Residential Renewable Energy Tax Credit only applies to upgrades made on your primary and secondary residence, rentals do not qualify. So you will receive a tax credit for the geothermal heat pump installed on your home but not the home your son rents. However, if he isn't actually renting from you, you may still qualify.

Also, whether or not you're technically your son's landlord, you may still be eligible for some Maryland and local utility rebates, but you will need to call the program administers to find out what the restrictions are. You may find that you will be better off waiting until your son buys the home so that he can take advantage of the rebates and tax credits.

Some programs to look into include:


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