Georgia Clean Energy Property Tax Credit Instructions

1. Review eligibility, criteria and other requirements associated with the clean energy property tax credit by checking the information provided on this website and the Department of Revenue regulations as well as any other applicable laws and regulations relevant to your particular project (i.e. building, environmental permits, etc.)
2. Complete installation of clean energy property. The clean energy property for which a tax credit is being claimed must be placed in service prior to applying for the clean energy property tax credit.
3. Retain all required documentation.
4. Complete appropriate GEFA preapplication form (below).
5. Await receipt of confirmation from GEFA.
6. Complete Department of Revenue Form IT-CEP-AP.
7. Attach GEFA confirmation to IT-CEP-AP and submit to Department of Revenue.
8. If tentatively approved, claim the tax credit on your state income tax form (attach signed IT-CEP).

Eligible Products

Any ENERGY STAR qualified geothermal heat pump is eligible for a tax credit. Please visit the ENERGY STAR website for a complete listing of systems.

Definitions and Examples

Heat Pumps vs. Electricity Generation

Geothermal systems that produce electricity are not eligible for this tax credit.

Installers

Residential and general contractors must be licensed in accordance with state law. Georgia does not require additional certification or license to install geothermal heat pump systems however consumers are encouraged to seek experienced contractors when installing clean energy property.

The State of Georgia does not recommend or endorse any installer or contractor however the following resources are provided for informational purposes.

• Air Conditioning Contractors of America

Additionally, the Georgia Energy Code requires that all “heating and cooling equipment shall be sized based on building loads calculated in accordance with ACCA Manual J or other approved heating and cooling calculation methods.” Simply replacing an old system with a new system of the same size is not adequate – a calculation must be performed and retained with other records.

Preapplication (required for preapproval of the clean energy property tax credit)

Please click here for the preapplication form.

Documentation (required to be kept by taxpayer)

Taxpayers are required to maintain documentation concerning any credits claimed. Documentation includes but is not limited to the following:

• Dated receipts, invoices, contracts marked paid, canceled checks, other proof of payment.
• System manuals, product information, specifications, literature, cut sheets, warranties, etc.
• Completed GEFA pre-application.
• Any applicable federal, state or local permits and/or licenses.
• Other reasonably available and relevant material that demonstrates eligibility for the tax credit.

Confirmation

1. Upon receipt of the pre-application by GEFA, the taxpayer will receive a confirmation. 
2. Print out the confirmation and attach to a completed Department of Revenue Form IT-CEP-AP.
3. Mail both forms to the Department of Revenue.
4. Within 60 days of receiving an application, the Georgia Department of Revenue will review and tentatively approve the application.
5. Upon receiving tentative approval, the taxpayer may claim the credit on his/her tax return for that tax year.

How much of a tax credit can be claimed for residential geothermal heat pumps?

The lesser of 35% of the cost of the clean energy property or the sum of $2,000.00 per dwelling unit applies for clean energy property related to geothermal heat pumps.