30% Federal Tax Credit

The emerging economic stabilization act of 2008 created new federal tax credits for homeowner and businesses who install geothermal heat pumps. While the residential credit was retroactive to January 1, 2008, the new tax credit for commercial properties started October 3, 2008. The law contains long term tax incentives to encourage the use of renewable energy technologies in homes and businesses. Homeowners may qualify for an income tax credit of 30% for an Energy Star geothermal heat pump system. By classifying geothermal heat pumps under federal renewable energy provisions with solar and wind, congress has recognized the crucial role this technology can play in our energy future. The notion of long term installation incentives will raise public awareness, improve the economics for purchases, and create a foundation for investment and new jobs in this renewable industry.

•30% of TOTAL system cost for qualified systems
–“uses the ground or ground water as a thermal energy source to heat the dwelling unit OR as a thermal energy sink to cool the dwelling unit, and…
–meets the requirements of the Energy Star program which are in effect at the time the equipment was installed.”
–Installed between 1/1/2008 and 12/31/2016
•No limit to credit amount
•Credit can offset regular income tax and AMT
•Can be carried forward into future years

 

This entry was posted in Rebates. Bookmark the permalink.