15-32-115. Credit for geothermal system -- to whom available -- eligible costs -- limitations. (1) A resident individual taxpayer who completes installation of a geothermal system, as defined in 15-32-102, in the taxpayer's principal dwelling is entitled to claim a tax credit, as provided in subsection (3), against the taxpayer's tax liability under chapter 30 for a portion of the installation costs of the system, up to $250 per year for 4 years. The credit may not exceed the taxpayer's income tax liability for the taxable year in which the credit is claimed.
     (2) For the purposes of this section, installation costs include the cost of:
     (a) trenching, well drilling, casing, and downhole heat exchangers;
     (b) piping, control devices, and pumps that move heat from the earth to heat or cool the building;
     (c) ground source or ground coupled heat pumps;
     (d) liquid-to-air heat exchanger, ductwork, and fans installed with a ground heat well that pump heat from a well into a building; and
     (e) design and labor.
     (3) The tax credit allowed under this section is deductible from the taxpayer's income tax liability for the taxable year in which the installation costs were incurred and for the next 3 taxable years succeeding the taxable year in which the installation costs were incurred. There is no carryback or carryforward of the credit permitted under this section.

     History: En. Sec. 2, Ch. 646, L. 1991.