In addition to geothermal energy, the different types of energy producers eligible for such tax credits for calendar year 2025 include wind, closed-loop biomass, open-loop biomass, solar energy, municipal solid waste, qualified hydropower production, and marine and hydrokinetic renewable energy.
In this episode of The Driller Newscast, Host Brock Yordy dives into the so-called “Big Beautiful Bill” making waves in Washington—legislation with major implications for the drilling, HVAC, and geothermal industries.
The IRA contains a provision called the “production tax credit” (PTC) that allows taxpayers to deduct a percentage of the cost of renewable energy systems from their federal taxes, according to the Environmental Protection Agency (EPA).
The EPA says the modification to the construction general permit (CGP) expands the list of areas covered by CGP rules to include construction projects in all “lands of exclusive federal jurisdiction,” which are defined as lands in the U.S. where the federal government retains exclusive jurisdiction in relevant respects.
Advances in technology such as directional drilling; fiber optic sensing; and hydraulic fracturing techniques from the oil and gas sector have “unlocked geothermal energy in places where it was previously impossible,” said Tim Latimer.
The Army Corps of Engineers is giving local governments, tribes, and nonprofits a chance to propose water-related projects—like improving flood control, water supply, or environmental infrastructure—for possible inclusion in its 2026 report to Congress. While this doesn’t mean projects will be built right away, it’s the first step in getting federal attention and funding.
'Uncertainty' about federal funding as directed by NEPA and the CWA is prevalent among utilities, according to Sigl, who said NEPA “has been extremely volatile since late” 2024.