Solar Energy Center

By: Chip Egg
The American Recovery and Reinvestment Act of 2009 has lifted the caps on Tax Credits to Qualified Geothermal Heat Pumps, previously limited to $2000.  Only Geothermal HVAC Technology qualifies for these unprecedented Tax Credits.

As a home owner you can receive a 30% tax credit on any Geothermal Heat Pump that meets or exceeds Energy Star requirements.  All Geothermal Heat pumps Qualify for this tremendous tax Credit.

The tax credit applies to all the costs you incur when you install your new high efficiency Geothermal Heating and Cooling System(s).

You can file for the credit by completing the Renewable Energy Credits subsection on your tax return forms.  If you are subject to the Alternative Minimum Tax, you can claim the credit on your taxes for the following year. No proof of purchase will be required; however, in case of an audit, you are encouraged to keep a detailed invoice of your investment on file.  After your new Egg Geothermal Heating and Cooling System is installed we will indicate that it is a "Geothermal Heat Pump" on the invoice and note that it "Exceeds requirements of the Energy Star program currently in effect".

 

There is a bonus 50% depreciation the first year, on top of an accelerated 5 year 100% depreciation.  If you couple this with the Florida 100% property tax exemption, the tax saving amount to a little over 8% of the purchase price.  So for a $1 million job, the tax incentives will amount to 56% of the purchase price over the first 5 years or $560,000 savings in taxes.  The energy savings are up to 50%, and can amount to extraordinary savings on top of these tax incentives.  Please see here for more information.

The tax credit is available through December 31, 2016. Consult your local tax professional for advice on taking advantage of the tax credit, as this announcement is not intended as a recommendation or endorsement of any financial strategy.

Helpful Resources

Consult your tax professional for details.

*Form 5695 for the 2009 tax year not yet available.

www.geothermalrebate.net

www.geothermalexperts.net