Geothermal, Small Wind Among Technologies to Benefit Under New Tax Credit Legislation

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Geothermal, Small Wind Among Technologies to Benefit Under New Tax Credit Legislation

geothermal
Image: Congressman Tom Reed. Credit: Office of Tom Reed

Reps. Tom Reed (R-N.Y.) and Mike Thompson (D-Calif.) this week reintroduced legislation that would extend through 2021 commercial and residential installation tax credits for geothermal heat pumps, fuel cells, microturbines, small wind and combined heat and power, according to the Geothermal Exchange Organization (GEO).

HR 1090 includes a 10 percent commercial investment tax credit and a 30 percent residential income tax credit.

These technologies were left out of the tax credit extensions granted in December 2015. Tax credits for these technologies ended on Dec. 31, 2016.

“We care about ensuring that we can produce reliable, clean and affordable energy that our nation needs right here at home. By implementing common sense policies like this one, we can ensure that this can be accomplished,” Reed said in a statement. “As we move forward with tax reform, having a structure that encourages this kind of development creates the quality, family-sustaining jobs that people throughout our country deserve, all while helping meet the energy demands of today and tomorrow. It’s a win-win.”

According to GEO, residential applications would receive a retroactive tax credit of 30 percent that phases out in steps before ending on Dec. 31, 2021. The commercial tax credit will remain at 10 percent through 2021. The bill also changes “placed in service” language in the tax code to “construction of which begins before Jan. 1, 2022” for commercial projects.

“Geothermal heat pumps are 100 percent ‘Made in the USA’ with American-made components manufactured and installed by American workers,” GEO President Doug Dougherty said. “Without reinstatement and extension of federal tax credits, the entire geothermal supply chain, including manufacturers, distributors, dealers, contractors, installers, drillers — plus all the families and small businesses that they support — will all see loss of investment and jobs.”

Source: Renewable Energy World Geothermal, Small Wind Among Technologies to Benefit Under New Tax Credit Legislation

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