Federal Tax Credit for Geothermal Extended

Diagram horizontal loop for geothermal heating and airGreat news for geothermal installations in the following years, the federal tax credit for geothermal installations got extended till 2023. Here some details described on the Geothermal Exchange Organization:

Federal Budget and Stimulus Signed into Law – Credits for Geothermal Included

Dec. 28, 2020 – President Trump ended several days of uncertainty last night, signing into law a massive budget, economic stimulus, and Covid-19 relief package. As we mentioned last week, this legislative package includes an extension for commercial and residential geothermal heat pump (GHP) tax credits. See our announcement from last week here.

The new law extends the credits for GHP installations through 2023. Residential credits are 26% through 2022, step down to 22% in 2023, and expire January 1, 2024. Commercial credits remain at 10% through 2023.

Additionally, the law sees the implementation of a long-sought change in the federal definition of renewable energy. That section in federal procurement law was amended to define “energy avoided” by a GHP as “energy produced” for the purposes of meeting clean energy targets in federal buildings. This change will further incentivize federal agencies’ adoption of GHPs and will have a cascade effect in state renewable energy and procurement policies.

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