Pierce-Arrow building being re-purposed with area’s largest geothermal system

Article and Images Originally Published on WBFO By Mike Desmond – Aug 2, 2018 https://news.wbfo.org/post/pierce-arrow-building-being-re-purposed-areas-largest-geothermal-system

The Pierce-Arrow complex in North Buffalo is a familiar site to area residents, a symbol of a luxury car company that went away in the Great Depression. Now, remnants of the plant are being re-purposed by developers for housing and the Elmwood Avenue landmark is getting what may be the area’s largest geothermal energy system.

Travelers who passed the old office building in recent weeks saw many indications of the construction project – concrete debris, orange netting, workers wearing hard hats, etc. – but they probably weren’t sure about some different-looking equipment brought in to drill wells – 50 of them – to be used by the geothermal heating system.

“This building will have 50 wells that are all 350 feet deep, and all those wells are combined inside the building to one big heat exchanger,” said Buffalo Geothermal owner Todd Schmigel, “and from there heat pumps are installed inside the building and those heat pumps generate the heat or the cool to condition the various spaces.”

Schmigel said it may be the largest ever geothermal system in this area. The system is somewhat more expensive to install, but a lot cheaper to operate.

“It’s green energy. It’s free energy. Why wouldn’t you take advantage of something that’s beneath your feet to heat and cool a building? It’s absolutely free energy,” Schmigel said. “Once the system is installed, the payback period is a very short period of time and for the life of the system, your reduced energy costs are up to 70 percent.”

The geothermal system will cost about $1 million and will heat and cool the more than $34 million conversion into 107 apartment units, a restaurant and some office space. The system is going in, as another contractor digs up the site for a brownfield cleanup. Other work to keep heating and cooling costs down includes the installation of insulation and energy-efficient windows.

“We can’t do all our steps until somebody else does theirs,” said Schmigel. “We can’t do the inside piping until the walls are built. We can’t mount our heat pumps until the next step happens. So we’ll be here for the duration of the project, which is about a year.”

 

To visit the original article: https://news.wbfo.org/post/pierce-arrow-building-being-re-purposed-areas-largest-geothermal-system

The 30% Geothermal Federal Tax Credit is back, which can save you thousands on installing a system and makes Geothermal more affordable than ever.  If you are replacing a conventional heating and cooling system, be sure to get a quote for Geothermal.

We can not offer tax advice to customers, but we are glad to share what we know. Please consult with a tax professional to understand your individual benefits.*

Tax Credit Amounts

• From January 1, 2017-December 31, 2019 – 30%
• From January 1, 2020-December 31, 2020 – 26%
• From January 1, 2021-December 31, 2021 – 22%

 

Tax Credit Highlights

• There is no maximum credit. You get the true percentage based on the year you install the Geothermal HVAC system.  It is a direct reduction of your taxes. (see example below)
• Systems must be placed in service on or before December 31, 2021
• The geothermal heat pump must meet federal Energy Star criteria. All geothermal systems that we install meet this criteria
• The tax credit can be taken on any home served by the geothermal system
• Can be combined with energy efficiency upgrade tax credits
• Can be carried forward if you don’t have enough tax liability to use the entire credit in one year
• The tax credit can be used to offset both regular income taxes and alternative minimum taxes
• A taxpayer will not receive a tax refund for any amount that exceeds the taxpayer’s tax liability for the year

 

Tax Credit Examples*

House A:
I make $60,000 a year
I owe $15,000 in taxes to Federal Government
I installed Geothermal! It cost $30,000 (before rebates)(financing available)
30% of $30,000 is $9,000
I can now subtract the $9,000 credit from the $15,000 and my new tax bill is only $6000!
(If the tax credit exceeds the income tax liability, the remaining balance can be carried forward into future years.)

House B:
I make $30,000 a year
I owe $7,500 in taxes to Federal Government
I installed Geothermal! It cost $30,000 (before rebates)(financing available)
30% of $30,000 is $9,000
I can now subtract the $9,000 credit from the $7,500 and my new tax bill is covered with $1,500 to carry in next year
(If the tax credit exceeds the income tax liability, the remaining balance can be carried forward into future years.)

 

The the tax credits are administered by the IRS. Please contact the IRS with your question:

• www.irs.gov/contact
• 2017 IRS Form 5695 form and Instructions.

*Disclaimer: The tax credit information contained within this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS).