Geothermal Tax Credits in Tax Reform Bill
GEO has announced that the extension of the residential and commercial tax credits for geothermal heat pumps is contained in the tax bill released by the U.S. House of Representatives.
The coordinated campaign for the past two years has resulted in Kevin Brady (R-TX), Chairman of the House Ways and Means Committee, and Paul Ryan (R-WI), Speaker of the House, agreeing with GEO's position that Congress picked winners and losers when tax credits for solar and wind were extended in December of 2015.
The language contained in the tax bill released today mirrors the language found in H.R. 1090. It would extend the residential and commercial tax credits until January 1, 2022. The residential income tax credit would be retroactive back to January 1, 2017 at 30 percent and continue at that level until 2020 when it would drop to 26 percent and then at 22 percent for 2021 and end December 31, 2021. The 10 percent commercial investment tax credit would be extended until January 1, 2022 and change the language for placed in service to “property the construction of which begins before January 1, 2022.”
The tax bill also provides for 100 percent expensing for capital expenditures until the end of 2022.
Publication date: 11/3/2017