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Our Ultra-Efficient HVAC System often has double the operating efficiency than typical HVAC equipment, and may qualify for federal tax credit, state and local government incentives, utility power company demand reduction program , and rebates.

IN October 3, 2008, The Emergency Economic Stabilization Act of 2008, H. R. 1424, became law. Included were tax credits for alternative energy systems among which are geothermal heat pumps.

 

Included in the bill establishes a one-time tax credit for 30% of the cost of job, up to $2,000, but now in 2009 the limit was lifted and homeowners can now get the full 30% credit for units that meet the tax credit specification of minimum efficiencies of 14.1 EER/3.3 COP for closed (ground) loop or 16.2 EER/3.6 COP for open (ground water) loop. These eligible geothermal or hybrid geothermal heat pump installations are those “placed in service' between January 1, 2008 and December 31, 2016 and must meet or exceed Energy Star requirements (minimum efficiencies shown above).

 

Owners can file for the credit by completing the Renewable Energy Credits subsection on their tax return forms. For taxpayers subject to the Alternative Minimum Tax, the credit can be claimed on their taxes for the following year.

 

It is recommended to consult with a tax preparer about receiving this credit. No proof of purchase will be required; however in case of an audit, owners are encouraged to keep a detailed invoice of their purchase on file. The contractor who sold and installed the system should list the purchase as a “Geothermal Heat Pump” on the invoice and that it “Exceeds requirements of Energy Star program currently in effect”. The taxpayer must have a copy of the Manufacturer's Certification.  This Certification document is not submitted with the taxpayer's return, but must be retained for tax records

These recent changes in Federal law contain long-term tax incentives to encourage the use of renewable energy technologies, including geothermal and hybrid geothermal heat pumps, in homes and businesses.

Tax Credits

   Residential Geothermal Tax Incentives

 

2009 to 2016

 

30% of total GHP system cost


No limit to credit amount  - straight 30%
Can be used to offset AMT tax
Can be used in more than one year

 

Bonus: Can be combined with solar and wind tax credits

   Commercial Geothermal Tax Incentives

 

10% of total GHP system cost
No limit to total credit amount
Can be used to offset AMT tax

Can be used in more than one year
10% grant available in lieu of tax credit

Can be combined with solar and wind tax credits

Eligibility

 

Home must be located in the U.S.
Includes houses, apartments, condos, mobile homes
Does not have to be your main home
GHP must meet Energy Star requirements
Installed between 1/1/2009 and 12/31/2016 

                              Eligibility

 

Building located in U.S.
Original use begins with taxpayer

Installed between 10/3/2008 and 12/31/2016

For IRS form 5695 - Residential  2008

Many utilities offer rebates or financial incentive programs aimed at commercial users of peak kW demand.

Residential & Commercial Tax Credits

               Accelerated Depreciation

 

5 year MACR depreciation for entire GHP system


Eligible for 50% first-year bonus depreciation for 2008 - 2009

Tax Credits, Incentives, rebates, grants, rules, regulations, and policies for renewable and efficient energy products.

 

 

Federal      State & Local    Utility Companies

Consult your local tax professional for advice on taking advantage of the tax credit.