ClimateMaster, a US manufacturer of water-source and geothermal heat pumps, announced the Emergency Economic Stabilization Act of 2008, H.R. 1424, which became law on October 3rd, contains long-term tax incentives to encourage the use of renewable energy technologies, including geothermal heat pumps, in homes and businesses.

The bill extends tax incentives for homes and commercial buildings that support the installation of highly efficient heating, cooling and water heating systems, such as geothermal heat pumps until the year 2016. The new law offers a one-time tax credit of 30% of the total investment up to a maximum credit of $2,000 for all residential ground loop or ground water geothermal heat pump installations. A credit of 10% of the total investment is also available without a maximum credit limit for a commercial installation. To qualify, the systems must meet or exceed EnergyStar requirements and be installed after December 31, 2007. Owners can file for the credit by completing the Renewable Energy Credits subsection on their tax return forms for 2008. For taxpayers subject to the Alternative Minimum Tax, the credit can be claimed on their taxes for the following year.

The new tax incentives for geothermal heat pumps are the culmination of an “all-out” federal legislative affairs effort unilaterally initiated by LSB Industries subsidiary, ClimateMaster, in April 2007. Dan Ellis, ClimateMaster President, with the support of a coalition of top-tier legislative consultants, embarked on a mission to educate Congress on the benefits of geothermal heat pumps and the role they could play in meeting our nation’s energy-efficiency and climate change goals, reveals the company’s press release.