Geothermal Tax Incentives in Nashville, Brentwood, Franklin, TN and the Surrounding Areas

Federal, state, and local governments all see the environmental advantages in geothermal heating and cooling systems. Therefore, there are a host of rebates and other incentives offered to consumers who purchase a geothermal system. But some home and business owners can feel overwhelmed by all the rules, regulations, and options available to them. That’s why we at M.J. Frick Co., Inc. will walk you through the process of getting the geothermal tax credits you deserve.

Geothermal Tax Credits – US

A wonderful new tax credit through the Energy Improvement & Extension Act is currently obtainable for commercial and residential dwelling owners when they install geothermal cooling and heating systems. For homeowners, this is a 30% one-time tax credit of the total cost of installing a geothermal system. For commercial systems, there is a 10% of total investment credit with no maximum.

Be Sure You are Eligible

Your eligibility and credit maximum depends on whether your system meets EnergyStar requirements and when you installed it. For instance, units installed in 2008 have a $2000 credit maximum, while units installed from January 1, 2009 through 2016 are able to take advantage of all credits. You can get the credit by filling out the Renewable Energy Credits area of your tax form.

There is no proof of purchase necessary, but if you are audited you should be sure to have a detailed receipt in your files. Be sure to insist that the receipt states that the purchase is for a “Geothermal Heat Pump” and that it “Exceeds requirements of EnergyStar program currently in effect”. Tax credits are good through the end of 2016. Be sure to talk to your tax professional for information on the tax credit.

Tax Incentive Summary for Geothermal Systems

If the tax credit surpasses your tax liability, the leftover amount can be brought forward to the next tax year. You can bring excess credit forward until 2016. The maximum permissible credit for geothermal is shown below:

There is no maximum dollar amount credit for systems placed in service after 2008.

System must be operational between January 1, 2008 and December 31, 2016.

Geothermal heat pump must match Federal EnergyStar standards.

The geo system does not need to be in the homeowner’s main residence.

Call Frick today to discuss an overview of our geothermal systems and what your options might be. Call 615.431.8095 now to find out about the environmentally friendly, money-saving benefits of geothermal systems.