ABM provided both design plans and specifications for this project. O’Connor GMC’s new facility is heated and cooled entirely by geothermal. Pine State Well Drilling provided 18-400 ft. vertical bore holes for the geothermal field. The building has two 10 ton water to water heat pumps to provide radiant heat in three areas of the building. The showroom has two 8 ton roof top units to provide heating and air conditioning. The remainder of the building has 7 water to air heat pumps which range from two to five tons. The mechanical room houses the bore field manifold, buffer tanks, water to water heat pumps, and all other necessary equipment. Trench drains were also provided in the new car delivery area and the service write-up bay. Controls were provided by ABM Mechanical.
ABM’s Role: Design & Build, Plumbing & HVAC
Owner: O’Connor Auto Group
General Contractor: Sheridan Corp.
Subcontractors: Twin City Sheet Metal, Maine Air Balance, Damon Insulation, Pine State Drilling
USA tax incentives can make the investment compelling!
New Construction Example with 50% Bonus Depreciation:
A corporation spends $1,000,000 to install a geothermal heat pump system in its new office building. They moved into the building during the 4th quarter of 2010. The corporation is in a 40% tax bracket when state income tax is included.
2012 Tax Credit: $1,000,000 x 10% = $100,000
Depreciable Basis: $1,000,000 – ($100,000 / 2) = $950,000
2012 Tax Credit:$1,000,000 x 10% = $100,000
2012 Bonus Tax Benefit: $950,000 x 50% bonus x 40% tax rate = $190,000
2012 MACRS Tax Benefit: $475,000 x 5% Q4 MACRS x 40% tax rate = $9,500
2012 $475,000 x 38% MACRS x 40% tax rate = $72,200
2013$475,000 x 22.80% MACRS x 40% tax rate = $43,320
2014$475,000 x 13.68% MACRS x 40% tax rate = $25,992
2015$475,000 x 10.94% MACRS x 40% tax rate = $20,786
2016$475,000 x 9.58% MACRS x 40% tax rate = $18,202
Total Tax Savings over 5 Years: $480,000