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**TaxGuyBill** · 05-10-2024, 12:01 PM

A Geothermal heat pump credit would be on Form 3468. However, if it is an electric air heat pump, I'm not aware of any credit for commercial use.

Even if there is not a credit, it MIGHT qualify for a special deduction under ?179D and Form 7205, so you'll want to look into that. But it is complicated and they may not qualify.

Energy efficient commercial buildings deduction | Internal Revenue Service

https://www.irs.gov/credits-deductions/energy-efficient-commercial-buildings-deduction

Building owners who increase energy efficiency in building systems by at least 25% may be able to claim a tax deduction.

About Form 7205, Energy Efficient Commercial Buildings Deduction | Internal Revenue Service

https://www.irs.gov/forms-pubs/about-form-7205

Information about Form 7205, Energy Efficient Commercial Buildings Deduction, including recent updates, related forms, and instructions on how to file. Form 7205 is used by qualified business entities and individuals to calculate and claim the deduction under section 179D for qualifying energy efficient commercial building property placed in service during the tax year; identify yourself as a designer or the building owner; provide information on the person performing the certification; and provide information on the person completing the allocation.

26 U.S. Code ? 179D - Energy efficient commercial buildings deduction

https://www.law.cornell.edu/uscode/text/26/179D

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Energy Credit for Commercial Building

Energy Credit for Commercial Building

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