A 26 percent federal tax credit for geothermal installations was extended for two more years. The extension was part of the federal government’s $900 million COVID relief package passed by Congress in December 2020.
The extension is good news for those considering the benefits of geothermal. It keeps the tax credit at 26 percent for residential geothermal for 2021 and 2022. The new law extends the credits for geothermal heat pump installations through 2023.
The residential credits are 26 percent through 2022 and step down to 22 percent in 2023, expiring on Jan. 1, 2024. Commercial credits remain at 10 percent through 2023.
Source: Federated Rural Electric Association