ClimateMaster Inc. -

Geothermal Heat Pump Legislative Announcement

On going changes in Federal law contain long-term tax incentives to encourage the use of renewable energy technologies, including geothermal heat pumps, in homes and businesses.

The tax incentives for geothermal heat pumps are the culmination of an “all-out” federal legislative affairs effort unilaterally initiated by ClimateMaster, an LSB Industries company (New York Stock Exchange Symbol: LXU). Dan Ellis, president, with the support of a coalition of top-tier legislative consultants, embarked on a mission to educate Congress on the benefits of geothermal heat pumps and the role they could play in meeting our nation’s energy-efficiency and climate change goals.

Highlights of the new tax incentives are listed below. For further information, download the Geothermal Tax Incentive Guides, which offer details and practical examples.

Click on the image to download a pdf copy of our Residential Geothermal Tax Guide:

Residential Geothermal Tax Incentives

30% of total GHP system cost
Credit limited to $2000 for 2008
No limit to credit amount for 2009 to 2016
Can be used to offset AMT tax
Can be combined with solar and wind tax credits
Can be used in more than one year

Eligibility:

Home must be located in the U.S.
Includes houses, apartments, condos, mobile homes
Does not have to be your main home
GHP must meet Energy Star requirements
Installed between 1/1/2008 and 12/31/2016

Click on the image to download a pdf copy of our Commercial Geothermal Tax Guide:

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

Consult your local tax professional for advice on taking advantage of the tax credit.


		for information and application for a grant in lieu of tax credits for property used in a trade or business.

		for the IRS form 5695 - Residential Energy Efficient Property Credit for tax year 2010

		for the IRS form 5695 - Residential Energy Efficient Property Credit for tax year 2009

		for the IRS form 5695 - Residential Energy Efficient Property Credit for tax year 2008

		for the IRS form 3468 - Investment Credit for commercial property tax year 2010.

		for the IRS instructions for form 3468 - Investment Credit for commercial property tax year 2010.

		for info on U.S. Tax Credits.

		to download a copy of the ClimateMaster geothermal tax certificate.

		to see what federal, local, and utility energy efficiency incentives are available in your area.