Federal Energy Tax Credit

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

2009, signed by the President on February 17, 2009 as part of the economic recovery package.

The Energy Improvement and Extension Act offers a one-time tax credit of 30 percent of

the total investment for residention ground loop or ground water geothermal heat pump

installations, with no maximum credit amount for a single residence. The legislation also

provids a credit of 10 percent of the total investment, with no maximum credit amount for commercial

system installations. Example: a qualifing new system costs you $12,000.00 it qualifies for a $4,000.00 Credit!

To qualify for the tax credit residential systems must meet Energy Star requiments, and

legislation is retroactive to residential systems installed after Dec. 31, 2008.

The federal tax incentive enhances the affordability of geothermal systems:

Enviornmentally friendly technology
Free, renewable supply of solar energy
Efficiency ratings up to five times higher than ordinary heat/cool systems
Savings on utility bills up to 70 percent
Reduced carbon footprint since the system burns NO fossil fuels.
Improved indoor air quality
Quiet operation with no noisy outdoor units
Safe operation that requires no open flame or fuel storage tanks
Less Maintenance
Increased system longevity (average live span of 24 years vs. 15 for conventional systems.

To learn more about the new federal tax credis visit http://www.thomas.loc.gov or

contact your local tax professional.