REHAU: Stimulus Will Strengthen Position For Geothermal
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.