Geothermal Included in Oct. 3 Recovery Act

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, passed by Congress Oct. 3 as part of the economic recovery package.
WaterFurnace International Vice President of Sales and Marketing, Phil Albertson, said, “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. 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 credit, 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. Owners can file for the credit by completing the Renewable Energy Credits subsection on their 2008 tax return forms. No proof of purchase is required. However, in case of an audit, owners are encouraged to keep a detailed invoice of their purchase on file. The contractor who sold and installed the product should list the purchase as a “Geothermal Heat Pump” on the invoice and note that the unit “Exceeds requirements of the Energy Star program currently in effect.”
For more information about the benefits of a geothermal heating and cooling system, visit www.waterfurnace.com or contact your local WaterFurnace representative.
To learn more about the new federal tax credits, visit http://www.thomas.loc.gov or contact your local tax professional.