Geothermal Heat Pumps Tax Credit

Issue

Many electric cooperatives promote the use of ground-source (geothermal) heat pumps for heating and cooling. This energy source is highly efficient and saves consumers money on their heating and cooling bills. However, the up-front cost of installing a geothermal energy system is prohibitive for many. Tax credits to help reduce the initial cost for installing residential and commercial geothermal systems expired at the end of 2016. In 2015, Congress extended and provided a phase down of tax credits for wind and solar technologies. However the tax credit for geothermal heat pumps (along with small wind and combined heat and power property) was left out of the year-end package, despite being in the same section of the tax code. Geothermal technologies need to be treated similarly to wind and solar technologies.

 

NRECA Position

Approximately 45% of electric co-ops across the nation utilize GHP technology in their energy efficiency efforts. Ask your Representative to stand up for electric co-ops, and urge the leaders of the House of Representatives to take up and pass H.R. 1090 today!

 

Fast Fact

Extend the Credit for Energy Efficient Geothermal Heat Pumps