Has anyone seen an increase of sales because of the availability of the 30% tax credit? Has it stimulated your sales?
Just curious.

Frankly waiting on the tax code, Clark.
All I can tell folks right now is at least $2,000.
J

We have had an increase in calls over the past several days and they all know about the 30% tax credit.

There probably would be a lot of people if their home values hadn't of dropped 40% and they could get credit, not sure whats gonna happen if the electric
rates double and triple in the next few years with all this carbon cap and trade stuff. I think here in Michigan the sales of wood stoves heaters is gonna skyrocket long before Geo sales can even get off the ground.

We are closing a deal tomorrow and the 30% tax credit helped us close on it but we are ramping up in Texas so that may not be representative.  What I am noticing though is the increased amount of deals in the sales pipeline.  So, I have my fingers crossed that what we are seeing is the leading edge of more sales. 

Re-Caution: 'till the IRS writes the tax code, nothing is a given..... a 30% credit that only covers the heat pump and not the electric or excavation, for instance, could pay less than the last one.
J

If the total system cost was $20k couldn't you just charge the customer $19.9k for the heat pump and throw in the loops and electric for free.  The customer would get a 30% credit.

We've seen a fairly dramatic increase in calls - similar to what we saw last July when the price of oil was over $140 a barrel.  The 30% tax credit makes the cost of a full blown geo system close enough to the cost of a traditional prehistoric fossil fuel system that it makes geo essentially a no brainer.

The tax code seems to allow the total cost of the install (ground taps, heat/cooling distribution, equipment etc) as part of the 30% credit.  This might even include radiant heat. 

Paul Auerbach
Total Green LLC
Geothermal Specialists
www.TotalGreenUS.com
 

Paul,
Does it mean if I had spent $30K on the entire geothermal (drilling, equipment, heat/cooling distribution etc). The total credit is $9K ?

If that's the case then the ROI is much shorter. That's great!!!

Paul, have you seen the tax code? We've seen the stimulus law, but not the IRS verbage (which ultimately determines what you can declare).
Bman, you can mince words however you like, but competant contractors are going to want to know what they can promise to deliver legally. If some one wants commit a little tax fraud after that.......
J

very true joe
but I do think It is fair to tell cust " The way the law is written the intire cost of install would be eligible for the 30% rebate "
if the IRS misinterperits the law that is a different story
I doubt that will happen considering the current 5695 form would only require whiting out up to 2k for it to apply to the current law
If you where to give a cust a highlighted portion of the law I dont see it as missleading
But I should also commend your hesitation because it shows that you would rather lose a job then be wrong and upset a custumer

PS most jobs are not bid time and material ( as many have complained about ) I find it very hard to beleive that the gov. would require us to bid jobs like mooks in order for our cust. to get the rebate

GF,
Do you expect no complaints for jumping the gun? If the IRS misinterprets, your customers will still notice that they only got back 2K instead of 6. Based on our experiences here where folks turn off aux. coils to save $10 or suggest single instead of dual pump flow centers to save $30/year are you sure you want to promise or even suggest rebates you can't guaruntee?
What I tell my customers currently is at least 30% up to 2K. That's what I can guaruntee.
My hesitation suggests I'd rather be right, as well as the knowledge of a long time businessman that a good legal defense is more expensive than giving a job away.
Ask your employer his position on the matter.
J