Grants: USA
UNITED STATES
USA - RESIDENTIAL
U.S. Department of Energy - Energy Efficiency and Renewable Energy
Recovery Act Announcement: Secretary Chu Announces Nearly $50 Million of Recovery Act Funding to Accelerate Deployment of Geothermal Heat Pumps June 02, 2009
During a visit to Fort Wayne, Indiana, where he toured a manufacturer of geothermal heating pumps (GHPs), U.S. Energy Secretary Steven Chu today announced nearly $50 million from the American Reinvestment and Recovery Act to advance commercial deployment of the renewable heating and cooling systems, which use energy from below the Earth's surface to move heat either into or away from the home or building. The expanded manufacturing and installation of GHPs could aid in the creation of new jobs while reducing the use of fossil fuels.
"The heat from the Earth represents a significant energy resource that can be tapped to reduce emissions contributing to climate change." said Secretary Chu. "Expanded use of GHPs in the United States will create new jobs for engineers, manufacturers and technicians while at the same broadening our nation's clean and renewable energy portfolio."
Geothermal heat pumps, also called ground-source heat pumps, can be more efficient than the air-source heat pumps more commonly found in commercial and residential applications today. GHPs can substantially reduce building-related electricity demand while providing lower utility bills and lower maintenance costs to users.
DOE today is announcing opportunities for geothermal heat pump projects in three areas.- Innovative Technology Demonstrations: Cost-shared technology demonstration projects that retrofit/incorporate a minimum of 50 tons of heating and cooling capacity and can be deployed in various geological conditions and climate zones in either residential communities or commercial buildings. Selected projects will incorporate innovative business and financing strategies, and focus on technological improves to speed marketplace deployment.
- Life Cycle Cost Tools: Projects that will assist in determining project feasibility by gathering and analyzing data related to system costs, performance, and installation techniques which will help decrease life-cycle cost applications for GHPs.
- National Certification and Accreditation: A national certification and accreditation program for the GHP industry designed to increase consumer confidence in the technology, reduce the potential for improperly installed systems, and assure product quality and performance.
Geothermal Tax Credits
An exciting new tax credit is now available for home and commercial building owners who install geothermal heating and cooling systems through the Energy Improvement and Extension Act of 2008 (H.R. 1424). H.R. 1424 offers a onetime tax credit of 30% of the total investment for homeowners who install residential ground loop or ground water geothermal heat pumps.. A credit of 10% of the total investment is also available (no maximum) for a commercial system installation.
To qualify, the systems must meet or exceed EnergyStar requirements and be installed after December 31, 2007. While units installed in 2008 are subject to a $2,000 cap on the credit, units installed from 2009 through 2016 can take advantage of the full credit. Owners can file for the credit by completing the Renewable Energy Credits subsection on their tax return forms for 2008. For taxpayers that are subject to the Alternative Minimum Tax, they can claim the credit on their taxes for the following year. No proof of purchase will be required; however, in case of an audit, owners are encouraged to keep a detailed invoice of their purchase on file. The contractor who sold and installed the product should list the purchase as a "Geothermal Heat Pump" on the invoice and that it "Exceeds requirements of Energy Star program currently in effect".
The tax credit is available through December 31, 2016. Consult your local tax professional for advice on taking advantage of the tax credit, as this announcement is not intended as a recommendation or endorsement of any financial strategy.
Geofinity Tax Documentation
Helpful Resources
USA - CORPORATE
The U.S. departments of Energy and Treasury announced on July 9 that guidelines would be available for companies wishing to apply for $3 billion in stimulus payments.
$3 billion Available
An estimated $3 billion will be made available through the stimulus act for the development of renewable energy projects around the country. The government has also created guidelines, terms and conditions and a sample application to help expedite the application process when it does open up so businesses will have a better chance of getting the money the first time they apply. (Click here for forms) Instead of tax credits, the feds hope direct payments from the Treasury will bring help to an estimated 5,000 biomass, solar, wind and other renewable energy production facilities that are starting up within the next few years.
According to the DOE, more than $550 million in tax credits have been handed out since 2006. But, the downturn of the economy has made it difficult to really take advantage of them.
"Previously, you needed to find an investor who needed the tax credits and was willing to put up money in order to receive them," said Greg Jenner, an attorney with Stoel Rives who specializes in the Treasury Department. "With the downturn in the economy, those investors became very scarce.
"The cash grant substitutes for that equity investment, which means you don't need to find investors anymore." Jenner said the payments also make doing business easier for developers.
"They can now do deals with a combination of their own money, the grant and bank loans," Jenner said. "That wasn't really possible before." The heads of the Treasury and Energy departments said they hope the payments will help to get the economy going.
"It will provide additional stimulus to economies in urban and rural America by helping to develop domestic sources of clean energy," said Treasury Secretary Tim Geithner in a statement. "This partnership between Treasury and Energy will enable both large companies and small businesses to invest in our long-term energy needs, protect our environment and revitalize our nation's economy."
Treasury Grant Program
So how do companies come up with the money to fund clean energy projects until the government's money opens up? One way is through the Treasury Grant Program, which uses an investment tax credit.
"The stimulus plan set a due date of August 17 for those," Noyes said. Another way to get money for now is through $6 billion in loan guarantees. Here, the government acts as a co-signer for companies moving to renewable energy or developing "green" upgrades to infrastructure.
State Funding Sources
At least 16 states also have money available from the stimulus plan to help fund energy projects. The DOE has already handed out more than $1 billion to states such as Minnesota, California, Missouri and Connecticut to help create or retain jobs, reduce greenhouse emissions and increase the use of renewable energy, among other things.
The Treasury Department's Web site also includes a sample application and terms and conditions that are mandatory when filing for the money. For example, property put into place after January 1, 2009 is eligible for stimulus funds. So are projects that have started construction between 2009 and 2010. The application has to be in no later than October 11, 2011 but only after project construction begins. The Treasury said it will make cash payments equal to the eligible amount of the tax credit, (which can be anywhere up to 30 percent), within 60 days of receiving the application.
