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Geo Tax Credits in Tax Reform Bill
Statement from Douglas Dougherty, President, GeoExchange Organization Friday, November 3, 2017
GEO is pleased to announce that the extension of the residential and commercial tax credits for geothermal heat pumps is contained in the tax bill just released by the U.S. House of Representatives. This is a huge victory for the geothermal heat pump industry, its customers and contractors.
The strong coordinated campaign led by GEO has resulted in Kevin Brady (R-TX), Chairman of the House Ways and Means Committee, and Paul Ryan (R-WI), Speaker of the House, agreeing with our position that Congress picked winners and losers when tax credits for solar and wind were extended in December of 2015. Since that time, GEO has worked tirelessly to fix this tax inequity.
Today marks a significant step toward achieving our goal of tax parity. But please remember this is not yet law. No business decisions or marketing efforts should be made in reference to this action today by Congress.
The language contained in the tax bill released today mirrors the language found in H.R. 1090. It would extend the residential and commercial tax 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.”
The tax bill also provides for 100% expensing for capital expenditures until the end of 2022, which is another benefit to the industry.
Again, today’s release of the tax bill with GEO’s language in it is a tremendous victory for the geothermal heat pump industry. Thanks to all who helped us to accomplish this step forward toward our goal. There is much more work to be done, and in the coming days we will be working hard to push tax parity for geothermal heat pumps over the finish line.
Doug Dougherty President & CEO Geothermal Exchange Organization
Who We Are
NY-GEO is a nonprofit trade association dedicated to geothermal heating and cooling. Our members include geo designers, installers, manufacturers, drillers consultants and distributors, interested in promoting the use of ground-source heat pumps to heat and cool buildings in New York State.
Geothermal heat pumps (GHPs)* represent a heating and cooling technology that is essential for us to meet the challenges of the 21st Century. The following benefits clearly make the initial capital costs an investment in the future of our local and global communities:
NY-GEO has created a state-wide organization focused on raising the visibility and understanding of the geothermal heat pump technology. As stakeholders, we know that understanding the features & benefits associated with GHP results in a genuine excitement about the technology.
We appreciate your support and encourage you to return often to our web site as we will be going through many changes as the organization gains momentum in the marketplace. Please feel free to contact us for any reason regarding geothermal heat pumps.
* Also known as "ground source heat pumps", "geo-exchange systems" or "low temperature geothermal."
Pictures from the 2017 Conference :
2017 TOP JOB Award Winner:
Buffalo Geothermal's Lockport Housing Authority Installation
2016 Conference Feedback