Tax Credits with Geothermal and Radiant?

Energy star website says...

"IRS has not issued SPECIFIC written guidance on this question.



The RULE OF THUMB that has become INFORMAL IRS guidance is that if the component is a CRITICAL PIECE OF THE PRODUCTS ENERGY EFFICIENCY, then it is covered, but if it's THE SAME COMPONENT that you would use on non-qualified product (gutter, and hardware on a qualified roof) ... then it would would not be covered.



The following are probably NOT covered by the tax credit:

nuts, bolts, gutter for a new roof

Hearth stovepipe/chimney for a biomass stove

NEW DUCTS FOR AN AIR CONDITIONER OR FURNACE



You can also contact the IRS directly ..."



Which I did. I spent about 25 minutes going through menus, mashing buttons, and contemplating purgatory, but finally got a nice, patient lady on the phone.

She directed me to the energy star website which carries the above quote.

I told her I needed something specific. i.e. Does Warmboard, Gyp-Crete, or Extruded heat emission plates qualify for the tax credit as part of the system?

She said they can't make a ruling because they don't know anything about heating systems. I told her if my customer claims it and gets audited THEN the IRS WILL make a ruling! She said they would then do research, ask manufacturers, installers, and see if it's "a critical component". She suggested I ask the manufacturer. I told her the manufacturer is scared to commit because the IRS has the final say-so and is non-specific.  I know they'll make a ruling if they audit us. I'm just trying to get a ruling BEFORE hand.  I told her that by the definition they give on energy star:



A radiant concrete slab WOULD be a necessary part of the system, (heat emitter) BUT it isn't different than what you would use with a forced air - same concrete floor.



A supply/return/distribution ductwork WOULD be a necessary part of the system, BUT is isn't essentially different than what a normal furnace would use- same basic duct.

The ground loops/wells for a GSHP ARE a necessary part of the system, AND they are different than what you would use on a regular furnace ( totally different, they don't exist on the non qualifying system)

By that same logic, a heat emitter (wall/ceiling/floor/radiator) IS a necessary part of a radiant heating system. AND either plates, Gyp, or Warmboard is a necessary part of the system. If you use Warmboard for example, that IS totally different component than what you would have otherwise with a non qualifying system (though it DOES still function as a subfloor)  AND it supposedly uses the lowest required water temps and has the best efficiency, which is what the tax credit is all ABOUT.



But basically, after 46 minutes and 3 seconds of holding that piece of plastic up to my head, all I learned is  that you will not know whether the heat emitter components (tubing, manifolds, and Gyp/Plates/Warmboard) qualify until you get audited, at which point the IRS WILL make a ruling. I asked Warmboard, and they didn't think they would qualify (they had done research) but didn't say they were "rejected". 

Mark Eatherton, you are the Warmboard evangelist- What say you?

I know you're not a tax attorney, but "off the record" speak freely -

please!  Any other thoughts, or experiences? Thanks guys, Kevin

It's not welfare Wayne...

The tax credit is simply 30% of the system cost taken off your bottom line taxable income. So the taxpayers aren't funding someone else's system, the govt is simply rewarding those who choose to invest in efficiency by giving them back some of their OWN money. They figure it's good for American and "mother earth" which is very fashionable these days among those who believe in global warming. I personally think it's all baloney, but the geothermal is STILL the most efficient thing going.