Federal Opportunities for Geothermal Projects as of February 17th, 2009

No cap on 30% tax credit for residential projects!
10% federal tax credit or grant and 5 year accelerated depreciation for commercial projects.
10% grants available for non-profits and municipal projects in lieu of tax credits.

Water-to Water Units now qualify for residential tax credit!

Click here for the latest update on GEO qualifications from the EPA on EnergyStar compliance.

Residental Projects
No cap on 30% tax credit for residential projects!

Geothermal heat pump systems for residential applications (new, retrofit, primary and non-primary residences) receive a 30% tax credit starting January 1, 2009 through December 31, 2016. (The $2,000 limit for the 2008 tax credit has been removed for 2009 and later years.)

• IRS Form 5695 For Residential Applications
• Dan Ellis Comments on Residential Tax Credits
• Download List of Estar qualified ClimateMaster Geothermal Units - Water-to-Water
• Download List of Estar qualified ClimateMaster Geothermal Units - Water-to-Air
• Energy Star on Geothermal Requirements
• H.U.D. - Energy Efficiency Mortgage Information
• Database of State Incentives for Renewables & Efficiency
• ClimateMaster Residential Tax Credit Certificate

Commercial Projects

• Information For Commercial Applications
• IRS Form 3468
• U.S. Department of Treasury Application Page
• Commercial Program Requirements
• Sample Application
• Guidance Document



• Commercial Systems: Renewable Energy Grants
• USDA Energy Efficiency Rebate Program for Rural Projects

• Tax Service Products
• Energy Tax Savers, Inc
  Commercial Tax credits and Grants service for Geothermal Projects

• More On Commercial Tax Credits
• Article: How To Apply For Renewable Energy Grants
• Vice President Biden releases "Recovery Through Retrofit Report

 

More discussion on the Stimulus Package

• The 30% residential tax credit has the effect of making geothermal systems cash flow positive at today’s energy prices in virtually every market.
• The federal, state, military and school initiatives will create hundreds of large installations calling for hundreds of geothermal heat pump units each, as well as geothermal loop field work.
• The commercial grants in lieu of 10% credits will make geothermal heat pumps very attractive to new and existing commercial enterprises in every market.

 

 

 

Tax forms for geothermal projects completed in the 2008 tax year:

• Residential Energy Efficient Property Credit
  
• Investment Credit

ClimateMaster Tax Information:

• ClimateMaster Tax Credit Summary
• Residential Geothermal Tax Incentives
• Commercial Geothermal Tax Incentives

News and Information:

• Climatemaster: Geothermal Heat Pump Legislative Announcement
• WED: More information on the stimulus package.
• Press Release: Geothermal Technology Supports Economic Recovery

What You Can Do
The huge stimulus going to all 50 states will now require renewed effort on the part of our industry to tell the geothermal heat pump story in each of the 50 states to assure the most effective use of the federal energy efficiency funds they will be receiving. Here is what you can do to help:

• Forward the information below to your local and state media contacts (newspapers, TV stations, radio stations, etc.).
• Post this information on your website.
• Talk to your school boards and administrators about the hundreds of schools already enjoying the benefits of geothermal heat pump systems.
• Contact your state and local government agencies responsible for energy and environmental programs and educate them on how geothermal heat pumps can help them meet their objectives with the stimulus funds.

For more information, visit our State by State reference.