REHAU announced that its RAUGEO™ ground loop heat exchange system qualifies for use under the American Recovery and Reinvestment Act, signed into law Feb. 17 by President Barack Obama. The $787 billion plan, which aims to create 3.5 million American jobs while also improving the nation’s infrastructure and services, includes the use of $288 billion for tax relief, $144 billion for state and locality support, and approximately $111 billion for infrastructure and scientific development.
The Act also contains
long-term tax incentives to encourage the use of high-efficiency HVAC and
renewable energy technologies in both residential and commercial applications. It
follows last October’s Emergency Economic Stabilization Act of 2008 (H.R. 1424),
which included both commercial and residential incentives for high-efficiency
HVAC and renewable energy technology use.
Along with the Emergency
Economic Stabilization Act of 2008, this month’s Act provides an uncapped
credit through 2016 for residential investments in geothermal heat pumps, as
well as an uncapped 10% investment tax credit for commercial installations
through 2016. By including geothermal
heat pump systems within the definition of “energy property,” the Economic
Stabilization Act also allows for a five-year depreciation period for commercial
systems placed in service after Oct. 3, 2008.
REHAU reports that the
Economic Stabilization Act created the first significant U.S. tax incentives
for geothermal heat pumps since 1980, and also for the first time classified
them under federal renewable energy provisions alongside solar and wind
technologies. “The positive impact these systems have on energy independence,
the environment and national security has already led to additional financial,
regulatory and utility incentives at the local and state levels,” REHAU
announced. (A comprehensive list of incentives by state is available at www.dsireusa.org.)
In addition to tax
incentives for renewable energy use, the American Recovery and Reinvestment Act
earmarks $2 billion for energy efficiency and renewable energy research,
development, demonstration and deployment activities, including a specific $400
million allocation for geothermal technologies.
REHAU: Stimulus Will Strengthen Position For Geothermal
February 27, 2009