Michigan Geothermal Installation

Residential Geothermal Tax Incentives

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30% of total GHP system cost

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No limit to credit for 2009 to 2016

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Can be used to offset AMT tax

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Can be combined with solar and wind tax credits

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Can be used in more than one year

Eligibility:

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Home must be located in U.S.

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Includes houses, apartments, condos, and mobile homes

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Does not have to be your main home

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Installed between 1/1/2008 and 12/31/2016

Commercial Geothermal Tax Credit or
10% Grant

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10% of total GHP system cost

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No limit to total credit amount

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Can be used to offset AMT Tax

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Can be combined with solar & wind tax credits

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Can be used in more than one year

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10% grant available in lieu of tax credit

Accelerated Depreciation:

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5 year MACR depreciation for entire GHP system

Eligibility:

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Building must be located in U.S.

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Original use begins with taxpayer

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Installed between 1/1/2008 and 12/31/2016

Additional Information:

Understanding the Federal Tax Incentives

Summarized IRS Tax Code

Federal Tax Credit Detail

Geothermal Savings Calculator

Right now is the perfect time to convert to a Geothermal Heating and Cooling System.
With the rising costs of fuel (gas, electricity, and oil) plus the Federal Tax Incentive
(30% Unlimited Tax Credit), there has never been a better time to convert to a
Geothermal Heating/Cooling System.

This tax credit is available through December 31, 2016.

A 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".

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.