Questions & Answers

What is required to qualify as a geothermal energy device?

A qualifying geothermal energy device must meet the following requirements:

  • It must consist of a system or mechanism, or series of mechanisms, designed to provide heating or cooling or to produce electrical or mechanical power, or any combination of these, by a method which extracts or converts the energy naturally occurring beneath the earth's surface in rock structures, water, or steam.
  • If a geothermal energy device is a part of a system which uses other means of energy, only that portion of the total system directly attributable to the cost of the geothermal energy device may be included in determining the amount of the credit; and,
  • The costs of installation may not include the costs of redesigning, remodeling, or otherwise altering the structure of a building in which the geothermal energy device is installed.

The unused credit from prior years may be carried over and used on subsequent tax years' returns for up to 10 years.

Let's Get Started

© 2002-2019 FreeTaxUSA, a TaxHawk, Inc. owned and operated website - Terms of Use | Privacy Statement