The geothermal heat pump industry and several other clean energy technology industries are a step closer to saving thousands of jobs with the reintroduction of tax credit legislation by Reps. Tom Reed R-N.Y., Mike Thompson D-Calif., and 18 additional cosponsors (12 Republicans and 6 Democrats).
Tax expert shares insight business owners should consider
January 9, 2017
With the constant changes in tax laws, Brian McCuller, shareholder-in-charge of the tax practice at Tennessee-based LBMC, has created a list of key changes in tax laws business owners should consider as they finalize their planning for 2017.
Residential energy-improvement tax credits in the U.S. have been in place since 2005, and they are set to expire in December 2016. Over the past decade, the 25C credit for high-efficiency HVAC equipment has been extended and modified multiple times, but no one can be sure it will be renewed after the presidential election is over.
As demand and support for energy efficiency, long-term cost reductions, and other benefits provided by solar installations grow, so does concern over how solar will look after current federal tax credits expire at the end of 2016.
The tax credit has undoubtedly been a boon for both the solar and wind industries, and while some have presented benefits to letting the credits expire and go away, many more are hoping they’ll be extended and renewed.
In the next five years, revenue growth of the solar water heater installation market is forecast to strengthen on the back of rising corporate profit, booming housing starts, and technological advances that will make solar water heaters more economical, according to a report from industry research firm IBISWorld.
Legislation that Congress passed and President Obama signed into law to avoid the so-called “fiscal cliff” also retroactively reinstated the 25C tax credits for high-efficiency HVAC and water heating equipment that expired at the end of 2011.
The past 12 months saw continued economic challenges for many American industries, including those in the renewable energy field, but the country’s geothermal community witnessed a year of growth, both domestically and abroad, according to the Geothermal Energy Association (GEA).