Commercial Financing & Incentives
There are several Federal and State incentive programs for geothermal heating and cooling systems for both new and retrofit commercial buildings. Commercial incentives can appear a bit complex at first glance but their implementation is fairly straightforward once you sort it out. Contact John Ciovacco at Aztech for how it applies to your project.
Unlimited Federal Tax Credit – Commercial
On February 9, 2018 a bill was signed into law restoring the 10% federal tax credit for geothermal heat pumps in the commercial sector. These tax credits are retroactive to Jan 1, 2017, so businesses who installed a system in 2017 are eligible for the 10% credit and MACRS 5 year accelerated depreciation. Credits and depreciation allowances have been extended to December 31, 2021.
The residential tax credit is different. For details see our Financing & Incentives for Your Home.
NYSERDA Geothermal Rebate Program !!
The amount of funding available to each project will depend on its size and the heat pumps capacity. Larger projects (e.g., multi-family, hospitals and college campuses) receive $1,200 per ton up to $500,000 per building with payments being made throughout the project. No single site can receive more than $1 million. Smaller projects (e.g., residential and small commercial buildings) get $1,500 per ton with a cap of $15,000 per project.
New Construction Program
The New Construction Program may aid your project with technical assistance to evaluate and design energy efficiency options, cash back for installation of cost-effective electric efficiency measures including geothermal heating and cooling in new or substantially renovated buildings. Additional incentives are also available for green buildings, solar technologies, industrial and process efficiency, and demand response.
Financial incentives are based upon the anticipated energy performance of the building relative to the Energy Code requirements. Actual incentives are based upon the anticipated energy performance of the building. Incentives cover a significant portion of the incremental costs of energy efficiency measures. Incremental costs are defined as the cost difference between the installed high efficiency equipment and the equipment that meets Energy Code requirements.
Existing Facilities Program
Existing Facilities Program offers incentives for a variety of energy projects including Pre-Qualified Measures and Performance-Based Incentives depending on the size of the project and the anticipated amount of incentive.
Bill Nowak, the Executive Director of the New York Geothermal Energy Organization (NY-GEO) regularly updates the membership of what's going on in New York and around the world. The pace of change is staggering lately so we thought to share this most recent update. It's really just a snapshot of a strong trend to electrifying the heating and cooling of buildings with heat pumps. Continue