ORLANDO, Fla. — While their booths were spread out on the show floor, the geothermal manufacturers shared the same concerns at the 2016 AHR Expo in Orlando — tax credits and natural gas prices.
The geothermal industry is acutely aware that government-issued commercial and residential tax credits are set to expire at the end of 2016. Currently, geothermal heat pumps in commercial applications are eligible for a 10 percent income tax credit, and residential applications may receive up to a 30 percent incentive. However, most at the show were confident these incentives would be extended. The industry thought they were in the clear when the omnibus bill passed last year in Washington, but, upon further review, a “drafting error” gave solar and wind a tax credit extension, but not geothermal.