Apr 15
Tax Incentive for commercial geothermal systems
Geothermal, IncentivesA tax incentive for commercial applications of geothermal systems has been passed into law and will stay in effect until 12/31/2016. It is a 10% tax credit for total system cost with no limit to the total credit. It can be used to offset AMT tax, and can be used in more that one year. A 10% grant is available in lieu of tax credit. It can be used in combination of solar and wind taxes and can be combined with energy efficient building deduction.
It also has a 5 year MACR depreciation on the entire system and is eligible for 50% first-years bonus depreciation for 2009.
For a commercial building this can amount to a very large amount of money.