Tax Incentive for GeoThermal Energy

state-incentivesThe Department of Energy is very committed to reducing electricty consumption over the whole country, as well as to reducing dependence on fossil fuels.  This is part of the whole package of reducing CO2 emissions, decreasing global warming and combatting polution. Some of the biggest lobby groups in Washington focus on the topic of renewable energy, and Congress is under considerable pressure to get something done, especially since it has yet to ratify the Kyoto Accord.  As a result, there is now an energy efficiency rating system in place (the Energy Star rating), and there are several incentive programs available for systems that contribute to the overall goal of reducing energy consumption.

Geothermal heat pumps are one of the most energy efficient systems available, and all systems qualify for the Energy Star rating.  Needing only one unit of power to produce three or four units of heating, these systems do not use carbon based fuels at all. This means that you will definitely qualify for the Federal tax rebate, and you are likely to find other state and Department of Energy incentives in your particular area.  There are often municipal incentives in your city as well.  When you take advantage of all these incentives, you will find a huge chunk o fthe cost of purchase and installation being refunded to you.

For example, since 2009, there has been a Federal tax credit of 30% applicable to all new and retrofitted geothermal heat pumps in residential areas. In addition, every state has its own incentives and tax benefits for geothermal installations.  California is particularly advanced in this ways, with more renewable nergy programs than almost any other state.

Click on this link to go to an interactive map which will help you find the tax incentives that you can benefit from.  Please note that these list only state initiatives – you will need to enquire about municipal incentives in your area.