Geothermal gains respect
Heat pump industry warms up

BY RICHARD MIZE

Published: October 11, 2008

Energy tax credits tucked into the huge federal financial rescue package gave the geothermal heat pump industry something that even tax money can’t buy:

R-e-s-p-e-c-t.

Specifically, the Emergency Economic Stabilization Act gave formal recognition of the "green” heating-and-cooling systems as "renewable energy” technology, said Jim Bose, a professor and director of the International Ground Source Heat Pump Association.

"It is really important to us because it is the first time that we are being tied to renewable energy,” Bose said.

The credit is for up to $2,000 per system for homeowners who have installed geothermal systems in 2008 through 2016. A credit for nonresidential systems is equal to 10 percent of total installation cost. The credits are exempt from limitations on deductions imposed on those paying the Alternative Minimum Tax.

Bose said the news thrilled the 600 builders, architects, engineers, pipe maker, drillers, installers and others at the association’s technical conference and expo, in Nashville, Tenn., when the U.S. House passed the bill and President Bush signed it.

Bose led the revival of the technology in the 1970s and early 1980s, making Stillwater and Oklahoma State University, where the association is based, ground zero for heat pump research .

"This is the year. This is the year we’ve been waiting for,” he said.

And Dan Ellis, president of Oklahoma City’s ClimateMaster Inc., which makes geothermal systems and products, said the tax credits will provide a stimulus to the industry and its "green” technology from homeowners, who have been slower to adopt the systems than commercial, military and institutional energy users because of high initial costs.

Comments