Extension of Geothermal Tax Credits Looks Promising
The geothermal heat pump (GHP) industry has expressed concern that its heating and cooling technology was excluded from extensions of federal tax credits given the solar industry in Omnibus spending bill recently passed by Congress, according to the Geothermal Exchange Organization (GEO). In spite of the concern, the association sees a positive way forward in 2016.
GHPs currently have a 10-percent investment tax credit (ITC) for commercial applications and 30-percent income tax credit (PTC) for residential installations until Dec. 31, 2016. The Omnibus bill extended the solar industry’s tax credits (30 percent commercial and residential) with a phase-out to 2022.