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Tax Credits for Commercial Geothermal Heating and Cooling Installations
On October 3rd 2008, geothermal heat pumps were added to the definition of energy property under section 48(a) of the Internal Revenue Code, which provides a 10% tax credit for spending on property placed in service through the end of 2016.
Energy property is classified as 5-year depreciable property in section 168(e)(3)(B)(vi)(I) of the Internal Revenue Code, meaning the cost of the property can be deducted on an accelerated MACRS basis. For depreciation purposes, the basis must be reduced by one half of the tax credit. For a corporation in a 35% tax bracket, the MACRS depreciation provides additional tax savings equal to 33.25% of the energy property spending within the first years, and this is largely front-loaded. By comparison, conventional heating and cooling systems are usually depreciated on a 39-year straight line basis, and would provide 4.5% in tax savings over the first 5 years.
Hoffmann Brothers is the premier St. Louis, MO Geothermal Heating and Cooling Contractor. Call for your Geothermal Heat Pump Energy Audit and learn more about Commercial Tax Credits!
 
Highlights of the Federal Tax Credits for Commercial Geothermal Installations
·       10% of total system cost
·       No limit to total credit amount
·       Can be used to offset Alternative Minimum Tax
·       Can be used in more than one year
·       10% grant available in lieu of tax credit
·       Can be combined with solar and wind tax credits
·       Can be combined with energy-efficient building deduction
Accelerated Depreciation for Geothermal Systems
o   5 year MACR depreciation on entire system
o   Eligible for 50% first-year bonus depreciation for 2008-2009
Eligibility for Geothermal Energy Tax Credits
o   Building located in U.S.
o   Original use begins with taxpayer
o   Installed between 10/3/2008 and 12/31/2016
Eligible Geothermal Heat Pump Energy Property
The tax credit may be claimed for spending on equipment which uses the ground or ground water as a thermal energy source to heat a structure or as a thermal energy sink to cool a structure. The structure must be located in the United States. Spending includes costs of installation.
Additional Tax Incentives Available to Geothermal Heat Pump Purchasers
Grants for Energy Property in Lieu of Tax Credits
Section 1602 of H.R. 1, the American Recovery and Reinvestment Act, provides for a 10% grant in lieu of the energy credit for eligible geothermal heat pump energy property placed in service during 2009 and 2010, or beyond 2010 for those projects that began during that time period. The grants are available upon request and will be paid within 60 days of the date of receipt of the application, or within 60 days of the date the energy property is placed in service, whichever comes later. The grant eligibility requirements are the same as those for the energy credit.
Energy-Efficient Buildings Deduction
Section 179D of the Internal Revenue Code provides a tax deduction of up to $1.80 per square foot to owners, or if government owned, designers, of new or existing commercial buildings that achieve a 50% annual energy cost savings compared to a reference building that meets the minimum requirements of ASHRAE Standard 90.1-2001. The savings are determined from the combined heating, cooling, hot water, and lighting use. If the full savings is not achieved, a partial deduction of up to $.60 per square foot can be taken for a heating, cooling, and hot water system that provides at least 1/3 of the required 50% annual savings. See IRS Notices 2006-56 and 2008-40 for details.  
Contact the Expert Commercial Geothermal Contractors at Hoffmann Brothers
 For over 20 years, Hoffmann Brothers has proudly installed and serviced Geothermal and other Energy Efficient heating and cooling systems throughout the St. Louis, Missouri Metropolitan Area. Please give us a call today at (314) 631-5892 or send us an email on our Contact Us page.
Our service area includes St. Louis County, Missouri, St. Louis City, Jefferson County, St. Charles County, St. Clair, Illinois, Madison County, Kirkwood, Chesterfield, Des Peres, Wildwood, Ladue, Town and Country, Frontenac, Clayton, Sunset Hills, and Creve Coeur

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Contact Hoffmann Brothers for information on tax credits that are available for a Geothermal Heat Pump Installation!

Hoffmann Friends

Hoffmann Brothers Heating & Air Conditioning:

1025 Hanley Industrial
St. Louis, MO 63144
Office: (314) 664-3011
Fax: (314) 256-2716
www.HoffmannBros.com

St Louis Plumbing Contractors
1027 Hanley Industrial
St. Louis, MO 63144
(314) 664-9705
www.PlumbingStLouis.com

St Louis Water Heater Contractors:
4312  McRee
St. Louis, MO 63110
Office: (314) 664-8574
www.waterheaterstlouis.com

Hoffmann Brothers St. Louis Mechanical Contractors:
1635 Tower Grove Avenue
St. Louis, MO 63110
Office: (314) 664-3536
www.StLouisMechanicalContractors.com


St Louis Missouri Workers Compensation

Roskin & Hoffmann
10900 Manchester Rd, STE 213
St. Louis, MO 63122
Office: (314) 821-9013
Fax: (314) 821-4580
www.RoskinHoffmann.com

The Law Offices of Stephen J. Hoffmann
105 Concord Plaza, Suite 209
St. Louis, MO 63128
Office: (314) 729-0803
www.hoffmannlegalservices.com

Tennessee Geothermal Contractor

Roscoe Brown
959 N Thompson Lane
Murfreesboro, TN 37129
Office: (615) 893-6972
www.MiddleTennesseeGeothermal.com

 

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Hoffmann Brothers
Geothermal Heating & Cooling Company
4301 Lafayette Ave.
St Louis, MO 63110
314-631-5892