Home
and commercial building owners who install geothermal heating and cooling
systems are now eligible for federal tax incentives under the Energy Improvement
and Extension Act of 2008.
Congress passed the legislation Oct. 3 as part of the economic recovery
package.
“By passing this important piece of legislation, Congress is encouraging the
growth of renewable energy and the small businesses across the country that
support it,” said WaterFurnace International Vice President of Sales and
Marketing Phil Albertson. “WaterFurnace dealers are excited about these tax
incentives and the positive impact it will have on their business as geothermal
systems become increasingly more attractive to both home and commercial
building owners.”
The Energy Improvement and Extension Act offers a one-time tax credit of 30
percent of the total investment for residential ground loop or ground water
geothermal heat pump installations, with a maximum credit of $2,000 for a
single residence. The legislation also provides a credit of 10 percent of the
total investment, with no maximum, for commercial system
installations.
To qualify for the tax credit, residential systems must meet Energy Star
requirements, and legislation is retroactive to residential systems installed
after Dec. 31, 2007. The tax credit for commercial buildings begins with
systems installed after Oct. 3, 2008.
“We believe this incentive will encourage many more homeowners and business
owners to install geothermal heat pumps,” said Tim Shields, WaterFurnace board
chairman. “Geothermal heat pumps are made right here in the U.S. and the
machines used to put the renewable heat exchangers in the earth are all made right
here. Every system installed requires skilled U.S. labor and more installations
mean more jobs. This is truly a homegrown solution to the energy crisis and a
very good way to address the financial crisis at the same time. The systems
were already growing in popularity, but this stimulus will help us have the
impact on the economy and the environment much more quickly.”
Tax incentives available for geothermal systems
January 1, 2009
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