Thought that was a per job/per year cap. But what do I know, I still have gas warm air (though not much longer with this credit).
J

Yes, you are correct joe. If you had a second job done another year, it wouldn't be capped from the last year.
Also, this assumes the form 5695 will stay the same, which I'd watch for an update to it as the final word as to how the retroactive part is handled. There's also a chance another bill will come around to make it retroactive to 2008 installs if its not. I think this already happened for solar panel installs, and a lot of people are now saying they had a 3 to 6 month "test" of the system before the contractor called it complete.

I don't know about this "test" business. If you get audited, the IRS might not buy it. It's hard to argue if you paid in full in 2008. Unless, you withheld a % of payment untill the "test" was complete, as per your agreement with the installer...would be the only way you could argue that, in my opinion.

The site was updated today, 2/20. The date is Jan 1, 2009, not 2008.

Guys like me, as owner/builder get screwed. The tax credits are mostly for upgrades to existing homes. Things like windows, insulation, etc., that make my new home energy efficient don't qualify for new homes. But a builder can get a $2000 tax credit for a home that saves 50% on energy compared to a 2004 standard construction. But an owner/builder, nope. My high efficiency air-to-air heat pump doesn't qualify even though its performance is on par with geosource.

And now the appraiser has busted me 30% on market value so I'm going to be underwater on my investment even before I get a mortgage. Makes me wonder if I wouldn't have been better off building and heating a tent! I could have bought a helluva lot of expensive natural gas for the money the appraiser cost me!

Mine is showing" to date "update with
Jan-08 as a start date ,but dont spend the money yet this energy star we are talking about
But that is new it used to say 09
Its tough to beleive that they would change it from right to wrong

Here's the skinny as I see it, looking again at the reference page and the IRS publication regarding the energy credit program. The program expired Jan 1, 2008. IRS Form 5695 for 2008 was prepared on Jan 6, 09 and was probably based on expectations of the stimulus bill because it shows $2000 and 30% numbers. There is a discrepancy on the reference page because the date under the "home improvement" heading is Jan 1, 2009 but in the table for the geo line it shows Jan 1, 2008. Every other date says 2009. IRS doesn't have an update after the bill was signed.

Looks to me like if you put a geo heat pump iinto service in 2008 you're out in the cold. Rotten, but that's politics.

This is from GeoExchange.org

The Stimulus Bill signed into law by the President on February 17th has many provisions that recognize the important contribution that the geothermal heat pump industry can make to the nation's economic recovery.  See What You Can Do at the bottom of this message.  Here is a partial list of the bill’s key elements:

<!--[if !supportLists]--><!--[endif]-->

• Geothermal heat pump systems for residential applications (new, retrofit, primary and non-primary residences) receive a 30% tax credit starting January 1, 2009 through December 31, 2016.  (The $2,000 limit for the 2008 tax credit has been removed for 2009 and later years.)
• Federal facilities and military installations will receive billions for energy upgrades, and geothermal heat pumps will be an important component of those upgrades.
• Each state will receive an average of $100 million to upgrade energy efficiency in the state, the uses for that money to be determined by each state, and geothermal rebates and loans are a good use of those funds.
• Schools with receive billions for modernizing and improving energy efficiency, another very good fit for geothermal.
• All commercial and private buildings are eligible for a 10% grant in lieu of tax credit for the total cost of installing geothermal systems, the check to be written from the government to the building owner within 60 days of completion.

<!--[if !supportLists]--><!--[endif]--><!--[if !supportLists]--><!--[endif]--><!--[if !supportLists]--><!--[endif]--><!--[if !supportLists]--><!--[endif]-->

Results of Stimulus Provisions 

• <!--[if !supportLists]--><!--[endif]-->The 30% residential tax credit has the effect of making geothermal systems cash flow positive at today’s energy prices in virtually every market. 
• <!--[if !supportLists]--><!--[endif]-->The federal, state, military and school initiatives will create hundreds of large installations calling for hundreds of geothermal heat pump units each, as well as geothermal loop field work.
• <!--[if !supportLists]--><!--[endif]-->The commercial grants in lieu of 10% credits will make geothermal heat pumps very attractive to new and existing commercial enterprises in every market.

The Text isn't unreadable enough, can you repost it again, smaller and in greek? :)

I really don't want to be the buzz kill here, but folks, honestly- you bought what you bought then, because it made sense. it'd be cool to find out later that it cost you 30% less, but many of you didn't even know you could save 2K let alone a full 30%.
Since we're borrowing from our children (and lord knows i joked more than once that mine owe me) a trillion or so, work the law and work your own morals but at the end of the day if you bought geo you're saving more than the 30% credit in a few years anyway.
Just sayin'
Those of you who missed the full credit can still invest in geo manufacturer stock and make a huge killin' over the next few years.
J

At $4 a gallon last year, geo made sense. With the cost of electricity gradually going up and the price of fuel bottoming out, that 30% would have made my payback reasonable. As it stands, my payback is now 20+ years.

Would I have installed a geo system at today's fuel prices, and crap economy? Probably not.

I would have thought last fall, there would have been an acute spike in geo installs, to avoid the pending winter catastrophe with 2008 fuel prices. Unfortunately, those of us who made the leap last year are now screwed for trying to do the right thing. (Out of our control…bad luck, whatever, but screwed nonetheless.) So now, with a crap economy and cheap oil, geo gets a boost...too little too late IMO. People are worried about their jobs and paying mortgages, probably won't make the leap until the economy recovers in 5-10 years. Yes, I said it. 10 years.

This is a very self serving perspective, but I just wish these yahoos would consider those folks that did make the leap last year and help us out to recover our investments.

..and yes, I am whining! :P

Everyone who installed Geo-Thermal in 2008 should wrote their respective Congressman and Senators. I have, stating that clarification is needed of the bills intent . Your elected officials have the ability to influence how this bill is inplimented with reguard to the tax law. This issue is not resolved until the corresponding tax law is written. Obviously anyone who installed in 2008 wants this benefit. Lets work to get it.

2nd that JAM
Vinman
I know that its little consolidation
and Im sure I am repeating myself
Watching oil prices will drive you insane , At least dont watch them more then when you burned the stuff
And while they are low now 1 hurricane , 1 war , 1 group of hedgfunds gets some one to look the other way
and we all start looking brilliant again , If none of that happens you break even on the system
One of the benifits of my profession is I get to talk to allot of people
Right now in the opinion of people that do it for a living is oil grossly over corrected
But we will see

Even taking account for cheap oil prices we are pleased with our decision to install our Geo.
Payback was not the only reason to switch to Geo. With oil, our home was never kept at 70 all winter and we diddnt even have A/C. I dont have to watch oil prices to decide when to take a delivery and come up with the cash to pay for it. Our home has never been more comfortable and bills are lower than they ever have been. The reason oil is cheap is demand is low. I would rather send a portion my paycheck to support American jobs at our friendly neighborhood, environmentally conscious, ozone friendly nuclear power plant than pay some commie terrorist for oil and blow a bunch of soot andl smoke into our atmosphere. I hope solar panel, wind, and nuclear power take over and power all our cars and trucks and heat and cool our homes. Then oil can be 2 cents a gallon and we can stop financing terrorist friendly countries.

My installer came today and put a second vent into my living room (he forgot during the original install), added a compressor blanket, changed a filter and did a general check of the system.  I'm thinking that since he technically finished the work today as opposed to install, perhaps this is how I could handle it:  Rather than amend my return, I simply get another credit for the 2009 tax year (not to exceed 30% of total cost and subtracting the $2000 already claimed)...I would have 2 invoices, one for November that I use for the $2000 cap and a one for February where work was completed that results in the remaining 1300$ credit.  What does everyone/anyone think?  My husband did all the digging but we still had to rent the machine, take personal time and buy diesel...

I tried to claim "Personal time" one year for repairs to my snow plow. I was informed to claim my own labor I would have to pay myself, pay taxes on the money I paid to myself, and then claim my labor. When I did the math they cancel each other out. I could claim parts and fuel costs. I still saved money not paying someone else to to the work.
The rest of what youre saying sounds reasonabe to me, but I'm not a tax pro. just thought I'd share what happened to me with trying to claim my own labor.

The deduction can be taken in the year the system was placed in service.  If you took the deduction in 2008, you have effectively told the IRS it was placed in service in 2008.  Based on what I am reading so far about the effective dates, I'm not sure your approach will make it past the IRS auditor for your 2009 return. 

If, however, the new deduction was made retroactive back to Jan 1, 2008, I think your approach would be fine.  And who knows, the IRS may interpret the new law broadly and issue a letter ruling allowing homeowners to carryforward unused tax credits into 2009.  If that happens, I think you would be able to take full advantage of the new law.

What is really wrong with this bill is the fact that most of the energy tax credits are for existing homes. Now, ask your politician why a guy that already has a house gets a 30% credit, and the guy that is building a new one gets zip? Who is stimulating the economy more? Yea, we have been steamrolled again. While it's nice for all of us to add to our own bank accounts through tax credits, the debt that each of incur to pay for this trillion dollar spendulous package will more than offset the tax credits received, you just won't notice it right away.

Where did you see that the credit is not for new houses?