Energy tax credits are now available for wind and geothermal energy
When Congress passed the Energy Improvement and Extension Act of 2008, it included a couple of additional tax credits. Included in the current bill is credit for small wind and geothermal heat pumps retroactive to January 1, 2008.
The tax credits are available through Dec. 31, 2016 and apply to small wind systems and geothermal heat pump equipment and installations. The 30 percent credit applies to the entire cost of the system including site preparation, equipment costs, labor, and installation of pipes and wiring necessary to connect the system.
For small wind installations, the credit is $500 per half kilowatt capped at $4,000. If the residence is a joint residency, each resident can figure the credit “at $1,667 per half kilowatt not to exceed $13,333″ for all residents. Married couples filing a joint return can’t count the credit as if it were a joint residency situation.
Geothermal heat pumps have a maximum $2,000 credit. The system has to meet the Energy Star requirements in place when the system is installed. As with wind installations, joint occupancy allows for increased credits. A maximum credit for all occupants of $6,667 can be received. Again, married couples filing jointly don’t get the joint occupancy credit.
Since even non primary residences will qualify for these tax credits, individuals like John McCain can install wind and geothermal systems at a different one of his seven residences each year through 2016 to continue getting renewable energy tax credits.
In other words, if wind and solar installations aren’t feasible on a primary residence, they may be practical for a secondary residence or vacation cottage. The energy credits will still be available and you still are helping the environment.
Whether you own one home or twelve homes, now is a great time to explore small wind systems and geothermal heat pumps for your home.
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July 24th, 2009
I think it is fantastic how the stimulus funds are making a difference. They are being taken advantage of all the time with the installation of geothermal heat pumps to replace high energy heating and cooling systems.
August 2nd, 2009
I think it is fantastic how the stimulus funds are making a difference. They are being taken advantage of all the time with the installation of geothermal heat pumps to replace high energy heating and cooling systems.