Federal Tax Incentives for
Commercial Geothermal Heat Pumps

As part of the Emergency Economic Stabilization Act of 2008, an incentive was added for geothermal heat pump property.

Federal Income Tax Credit:

• 10% of total system cost
• No limit to total credit amount
• Can be used to offset AMT tax
• 10% grant available in lieu of tax credit
• Can be combined with solar and wind tax credits
• Can be combined with energy-efficient building deduction

Accelerated Depreciation:

• 5 Year MACR depreciation of entire system
• Eligible for 50% first year bonus depreciation for 2008-2009

Eligibility :

• Original use begins with taxpayer
• Installed between 10/3/2008 and 12/31/2016
• Building is required to be located in the U.S.

For more information please contact us at  info@middletongeothermal.com