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 August 15, 2022 the Inflation Reduction Act was signed into law increasing and extending the federal tax credit for geothermal heat pumps in the commercial sector. The structure has some complexity but most buildings would be eligible for a 30% unlimited federal tax credit. In addition for-profit businesses are eligible for accelerated depreciation and may be able to expense the system in the year it was installed. A new provision allows tax-exempt organizations to also receive a “direct payment” worth the value of the federal tax credit. Credits and depreciation allowances have been extended to December 31, 2032. For details about how federal tax credits may aid your project, send us a note and we’ll do our best to give you the latest information and point you to resources to help take advantage of these credits for your organization.
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.
Aztech Geothermal's John Ciovacco exhibited at the NYSERDA Community Heat Pump EXPO to support the emergence of networked geothermal systems in the Northeast. Aztech is looking to make the most efficient building electrification technologies both affordable and accessible through these creative, and expandable networks. Continue