American Recovery and Reinvestment Act offers alternative energy investment incentives; strengthens position for geothermal
February 26th, 2009Leesburg, Va. — REHAU announced that its RAUGEO ground loop heat exchange system qualifies for use under the American Recovery and Reinvestment Act, signed into law on February 17 by President Barack Obama. The $787 billion plan, which aims to create 3.5 million American jobs while also improving the nation’s infrastructure and services, includes the use of $288 billion for tax relief, $144 billion for state and locality support, and approximately $111 billion for infrastructure and scientific development.
The Act contains long-term tax incentives to encourage the use of high-efficiency HVAC and renewable energy technologies, including systems like RAUGEO, in both residential and commercial applications. It follows last October’s Emergency Economic Stabilization Act of 2008, H.R. 1424, which also includes both commercial and residential incentives for high-efficiency HVAC and renewable energy technology use. Along with the Emergency Economic Stabilization Act of 2008, it provides an uncapped credit through 2016 for residential investments in geothermal heat pumps, as well as an uncapped 10-percent investment tax credit for commercial installations through 2016. By including geothermal heat pump systems within the definition of “energy property,” the Economic Stabilization Act also allows for a five-year depreciation period for commercial systems placed in service after October 3, 2008.