Barring an act of Congress, the 30 percent federal tax credit for residential geothermal heat pump (GHP) systems will expire at the end of 2016. Since the tax credit went into effect in 2008, many contractors have seen a significant boost in their geothermal businesses, and now that it may be coming to an end, they are worried about what that means for the future.
Daryl Pater, owner, Mainstream Heating & Cooling, Clarksville, Tennessee, is one of several contractors concerned about the expiration of the tax credits. “It’s a big deal. Right now, the tax credit makes geothermal at least reasonably affordable for homeowners. Once the tax credit is gone, geothermal will only be an option for the very, very wealthy. Lack of a tax credit will kill the geothermal market for the average homeowner.”