geothermal information

Geothermal Tax Credit

Geothermal new tax credit until 2016

A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Consumers can itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.

An exciting new tax credit is now available for home and commercial building owners who install geothermal heating and cooling systems through the Energy Improvement and Extension Act of 2008 (H.R. 1424). H.R. 1424 offers a onetime tax credit of 30% of the total investment for homeowners who install residential ground loop or ground water geothermal heat pumps. A credit of 10% of the total investment is also available (no maximum) for a commercial system installation.

To qualify, the systems must meet or exceed EnergyStar requirements and be installed after December 31, 2007. While units installed in 2008 are subject to a $2,000 cap on the credit, units installed from 2009 through 2016 can take advantage of the full credit. Owners can file for the credit by completing the Renewable Energy Credits subsection on their tax return forms for 2008. For taxpayers that are subject to the Alternative Minimum Tax, they can claim the credit on their taxes for the following year. No proof of purchase will be 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 that it "Exceeds requirements of Energy Star program currently in effect".

NOTE: 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.

Geothermal energy has been used to heat and air condition buildings for several decades, and, during that time, these geothermal systems have been called many different things. Some of the more popular variations include geo-thermal, geoexchange, ground-water, ground-water assisted . . . -->for more infomation about a Water Furnace <--

David R. Roberts Builders builds geothermal & Energy Rated custom-built homes in the greater Kalamazoo area and Southwest Michigan. For more information or if you have any questions about building a Geothermal or Energy Star home, feel free to call (269) 375-5094 or email us


Your floor plan or ours, your lot or ours, using "CAD" computer aided design.

David R. Roberts Builders, Inc.
6553 Bayfield Drive,
Kalamazoo, Michigan 49009
Phone: (269) 375-5094 
Fax: (269) 375-1428

Please call for additional information or an appointment.   ---  (269) 375-5094