Prospective West Union district geothermal system users can, at present, use each of these financial incentives to reduce the cost of installing a ground source heat pump: a federal tax credit, state and federal accelerated depreciation tax deduction, the Alliant Rebate and a REAP grant. Importantly these cost reducing programs can be used in tandem.
The Federal Tax Credit for businesses installing geothermal systems is 10% of the total system cost and runs through the end of 2021. There is no Iowa geothermal tax credit for businesses. A reminder that businesses can take advantage of accelerated depreciation to get a tax deduction on both federal and state income tax. The 2017 Tax Cuts and Jobs Act allows for 100% bonus depreciation for systems installed through the end of 2022.
Alliant Energy Rebates
Alliant Energy has rebates on new geothermal systems up to $1200 per ton. This could be up to $6,000 off the cost of a 5-ton system (big enough for a large home or typical downtown business). Alliant caps all their rebates at max of 50% of the installed cost.
Rural Energy for America Program (REAP)
REAP Grants can also help offset the cost of energy efficiency and renewable energy projects. REAP can cover up to 25% of the total cost of the project. The grant application process is open but funding is not guaranteed.
Green Up West Union Project Team
The Green Up West Union project team is available to forecast installation costs, payback schedules, and ultimately the cost/benefit ratio.