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.
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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.
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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.
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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.
