Recent changes in Federal law contain long-term tax incentives to encourage the use of renewable energy technologies, including goethermal heat pumps, in homes and businesses. Highlights of the new tax incentives are listed below. For further information, contact use at 814-443-6796.
Residential Geothermal Tax Incentives
30% of total GHP system cost
Credit limited to $2000 for 2008
No limit to credit amount for 2009 to 2016
Can be used to offset AMT tax
Can be combined with solar and wind tax credits
Can be used in more than one year
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 1/1/2008 and 12/31/2016
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 combined with solar and wind tax credits
Can be used in more than one year
10% grant available in lieu of tax credit
Accelerated Depreciation:
5 year MACR depreciation for entire GHP system
Eligible for 50% first-year bonus depreciation for 2008 - 2009
Eligibility:
Building located in U.S.
Original use begins with taxpayer