Clean energy tax credits could be extended for several industries
The geothermal heat pump industry and several other clean energy technology industries are a step closer to saving thousands of jobs with the reintroduction of tax credit legislation by a by bipartisan group of 13 Republicans and seven Democrats. The group of legislators included Congressman Darin LaHood of Illinois. HR 1090 will reinstitute and extend through 2021 commercial and residential installation tax credits for geothermal heat pumps, fuel cells, microturbines, small wind and combined heat and power. Included are a 10 percent commercial Investment Tax Credit under Sec. 48 of the tax code, and a 30 percent residential Income Tax Credit under Sec. 25D.
The legislation is meant to remedy the inequity created in December 2015 when Congress extended similar tax credits for commercial solar energy and residential solar energy installations, but neglected to include geothermal heat pumps and other qualifying clean energy technologies. Tax credits for the “orphaned” clean energy technologies ended at midnight on Dec. 31, 2016.
“Geothermal heat pumps are 100 percent ‘Made in the USA’ with American-made components manufactured and installed by American workers,” said Geothermal Exchange Organization (GEO) President Doug Dougherty. 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. For more information go to www.geoexchange.org.