Tax Incentive

Commercial Geothermal System Federal Income Tax Credit

• 10% of total system cost
• No limit to total credit amount
• Can be used to offset AMT tax
• Can be used in more than one year 10% grant available in lieu of tax credit (2009, 2010 & 2011)
• Can be combined with solar and wind tax credits
• Can be combined with energy-efficient building deduction

Accelerated Depreciation:

• 5 year MACR depreciation on entire system Eligible for 50% first-year bonus depreciation for October 4, 2008 through September 7, 2010
• Eligible for 100% first-year bonus depreciation for September 8, 2010 through December 31, 2011
• Eligible for 50% first-year bonus depreciation for 2012

Eligibility:

• Building located in U.S.
• Original use begins with taxpayer
• Installed between 10/3/2008 and 12/31/2016