Coronavirus Aid Package Signed! December 28 2020

The $900 billion Covid relief bill was signed last night.

The stimulus package contains a number of provisions good for the Geothermal Heat Pump industry.

  • Section 48 Commercial Tax credits for Geothermal (still only 10%) are extended to include systems whose construction begins before January 1, 2024.

  • Section 25D Personal Tax credits:
    • Extended to systems placed in service before January 1, 2024.
    • Phasedown of the credit has been slowed. Systems installed before 2023 will get 26% while systems installed during 2023 will get 22%.
  • Section 179D "Energy efficient commercial buildings deduction" is:
    • Made permanent.
    • Will be inflation adjusted in the future
    • Various other changes are made to reflect the permanent nature of the provision. (e.g. The ASHRAE standards in effect 2-years previously will be used as the reference.)

Thanks to NY-GEO member Bob Wyman for this analysis.

Here's the PDF of the text of the 5,593 page legislative package

Further articles on the tax bill and its energy provisions can be found in Green Tech Media, the American Council for an Energy Efficient Economy (ACEEE), CBS News, Utility Dive and Project Finance Law. The focus of most of those articles is on the solar and wind provisions of the bill.