Tax Credit Extension
Dec. 28, 2020 – President Trump signed into law a massive budget, economic
stimulus, and Covid-19 relief package. This legislative package contains an
extension for commercial and residential geothermal heat pump (GHP) tax credits.
The new legislation lengthens the deadline for the credits for GHP installations
through 2023. Residential credits are 26% through 2022, then decrease to 22%
in 2023, and expire January 1, 2024. Commercial credits will remain at 10% through 2023.
Additionally, the law will allow for the fulfillment of a transfiguration in the federal definition of renewable energy. That section in federal procurement law was made to define “energy avoided” by a GHP as “energy produced” for the objective of meeting clean energy targets in federal structures. This adjustment will additionally motivate federal agencies’ acquiring of GHPs and will have a massive impression on state renewable energy and procurement policies.
Excel Geothermal is excited to begin 2021 with this great news, giving the geothermal industry a better chance to continue to inspire many to adopt geothermal energy as a mainstream energy source. This will be a great year for geothermal as we move towards majority in the commercial and residential industry with extended benefits for those who adopt geothermal energy into their lives and homes.