Geothermal Heat Pumps Can Be Eligible for Federal Tax Credit of 30%

The American Recovery and Reinvestment Act of 2009, H.R.1 (the Stimulus Bill of 2009), contains long-term tax incentives to encourage the installation of geothermal heat pumps in residences. It offers a one-time tax credit of 30% of the total investment for geothermal heat pump installations.

 

It should be understood that a tax credit is generally more valuable than a tax deduction of the same magnitude because a tax credit reduces the tax obligation directly, while a deduction only reduces taxable income.

 

While it is expected to take many months for the IRS to release the updated forms and instructions for filing to claim this credit, it is expected that the credit will be treated as a refundable credit, so they not only directly reduce the amount of tax payable, they could bring a taxpayer’s tax obligation into the negative.

 

A tax credit of 10% of the total investment is also available without a maximum credit limit for commercial installations.

 

Read more about this legislation.

Under the IRS rules, manufacturers need to certify that specific measures are eligible. Taxpayers should obtain a copy of this certificate (see below) when buying these products from the manufacturer, contractor or retailer. Certifications need not be submitted to the IRS, but should be kept on file in case the IRS has questions. As always, contact your tax consultant for eligibility requirements.

 

Manufacturer's Certification Statement (PDF, 57 KB)

EPA Verified 75% Energy Savings

The simple experience of heating a pot of water on a stove demonstrates that a lot of energy must be applied for an extended time. Multiply that amount 1,000 times and one begins to realize the expense of water heating in a hotel or institution. Water heating generally represents 35% of energy cost in the hospitality industry, 32% in restaurants, and 18% in health care facilities.

 

     Click to read the full report.

 

Saving 75% is now possible with the powerful hybrid EarthLinked® system, using renewable energy from the earth. It’s an add-on to the traditional means of water heating, so capacity and reliability are increased!

 

Businesses and institutions are pressed to reduce their energy cost. It is necessary to gain control over their future by increasing efficiency, reduce costs, and adopt sustainable practices wherever possible. Those who are anchored in the old ways remain exposed to volatile energy prices and risk losing competitive advantage.

Earthlinked also has a variety of models for heating and cooling buildings in addition to hot water.

Learn which options are best for you!

Every situation is different. Contact us today to learn which options are best suited for you. Our experts will show you how to navigate the credit and rebate process.

Your Energy Smart Analyst in the Coastal Central, Central Valley, Silicon Valley areas is:

 

Logan Ahlgren,
Field Energy Analyst

Territory: Coastal Central, Central Valley and Southern PG&E service area

Logan Ahlgren has vast experience as an energy auditor and a keen eye for identifying energy-saving opportunities in grocery stores. Logan has a background in lighting and is an expert in refrigeration technologies. Logan also brings expertise in building controls analysis, energy load calculation and high-efficiency technologies.

logan.ahlgren@clearesult.com

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