HVACR's Geothermal Tax Credits May Be on the Verge of Coming Back
Congressional leaders have released a budget deal that includes the return of the geothermal tax credits
ARLINGTON, Va. — It looks like hard work and shoe leather on Capitol Hill might soon result in another victory for America’s HVACR contractors.
Congressional leaders have released a budget deal that includes the return of the geothermal tax credit.
Specifically, the Bipartisan Budget Act would:
- Retroactively extend the residential geothermal tax credit until Dec. 31, 2021, Section 25 or the 30% tax credit for the Residential Geothermal Tax Credit; and
- Retroactively extend for “property the construction of which begins before Jan. 1, 2022,” for Section 48 or the 10% tax credit for commercial geothermal applications.
These tax credits expired at the end of 2016, and ACCA and our friends at the National Rural Electric Cooperative Association and American Gas Association have been hard at work to see these credits restored.
Bipartisan Budget Act Background:
This budget deal includes the five-year phaseout tax credits for 48c and 25D (starting on page 209). However, it does not include language that would increase the commercial geothermal credit from 10 percent to 30 percent, nor does it include the addition of waste heat to power. It’s important to note that 48 and 25 received the full five-year phaseout, while most of the other tax credits received a one-year retroactive credit for 2017. The other credits that were modified are the 45J production tax credit for nuclear that is imperative for the future of a nuclear plant in Georgia and the 45Q credit for carbon capture and sequestration.
The continuing resolution expires at midnight tonight, Feb. 8, therefore, in order to avoid a government shutdown, the Senate will need to amend the House spending bill to include the new deal and the budget deal will have to be voted on again by the House before being signed into law today. There are a lot of concerns about the bill’s cost and the lack of any agreement on how to address immigration, so this isn’t a done deal yet and it will likely be a long night.
This blog originally was posted on the ACCA website: http://bit.ly/ACCAGEO.
Publication date: 02/08/18