Since the tax credits went into effect in 2008, many contractors have experienced a significant boost in their geothermal businesses. And, now that the geothermal tax credits have lapsed, contractors and manufacturers are prepared to continue forward without them.
Geothermal credits are being reintroduced in the form of the Reed Bill, legislation introduced by Tom Reed, R-N.Y., Mike Thompson, D-Calif., and 18 additional cosponsors (12 Republicans and six Democrats).
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.
The 400 geothermal homes range in size from 1,050 to 1,400 square feet
August 10, 2015
The home, located in the organization’s Faith Landing development in southwest Oklahoma City, represents an ongoing collaborative commitment between ClimateMaster and Habitat for Humanity to construct all homes in the region with geothermal heating and cooling systems.
While the geothermal industry is enjoying the growth, many are focused on 2016, when the tax credits are set to expire. The existing tax credit grants a 30 percent incentive for residential projects and 10 percent for commercial projects.
Geothermal systems can significantly reduce energy consumption in a traditionally built house, but when installed in conjunction with a tight thermal envelope, they can help a homeowner procure the coveted net zero energy label.