Christmas came early for the geothermal industry when the latest federal stimulus bill included a long-sought extension of tax credits for geothermal installation. Existing tax credits were set at 26% throughout 2020, 22% throughout 2021, and falling to zero at the end of 2021. Now geothermal tax credits will stay at 26% for 2021 and 2022 before falling to 22% in 2023.
That’s better than the alternative, but still less than the industry had been lobbying for. Doug Dougherty, president of the Geothermal Exchange Organization (GEO), said his group had been working with members of Congress on a bill that provided a five-year extension, starting at 30% for 2021 and retroactive to 2020. The wording from that bill was included in the House version of the stimulus bill. However, Dougherty heard from staff they would never get the full five years at 30%.