30% Tax Credit – Is it coming back?

In December 2015 congress passed a spending bill that extended tax credits for big wind and solar energy but left geothermal out. That was the end of the 30% Federal Tax Credit for geothermal.

The new tax bill just released by the House of Representatives includes language that would extend the residential and commercial tax credits until January 1, 2022. The residential income tax credit would be retroactive back to January 1, 2017 at 30% and continue at that level until 2020 when it would drop to 26% and then at 22% for 2021 and end December 31, 2021. The 10% commercial investment tax credit would be extended until January 1, 2022 and change the language for placed in service to “property the construction of which begins before January 1, 2022.”

Remember – this is just a draft of a bill and it is NOT yet law, far from it. Congress hopes to vote on it prior to Thanksgiving. It’s possible the bill will change quickly in Congress. Don’t forget there’s the Senate, which may draft its own, separate legislation.

Its a huge deal for the Geothermal industry IF it makes it through. We must give credit to the Geothermal Exchange Organization who has fought tirelessly to give geothermal the same benefits as solar – great job!

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