Residential geothermal contractors have relied on tax credits since 2005, but the One Big, Beautiful Bill Act will end the 30% credit in 2025. A previous credit removal in 2016 caused a 45% sales drop, leading to pessimism for 2026. However, demand for geothermal remains strong.
Geothermal technology could become an important tool for reducing data center energy use, but HVAC contractors need more than enthusiasm to take advantage of this opportunity.
As Northern Virginia’s data center boom strains power, water, and infrastructure, industry leaders are turning to district energy to transform waste heat into a scalable, low-carbon resource.
The hot gas reheat option allows the Tranquility SB water-source heat pump to effectively manage latent loads without overcooling occupied spaces, making it ideal for schools, healthcare facilities, multifamily buildings, and other humidity-sensitive environments, a ClimateMaster press release said.
For environments that demand quiet comfort, the Tranquility SL includes an UltraQuiet sound-attenuation package, double isolation compressor mounting and an integrated sound attenuator box.
Residential credits are set to sunset, but commercial geothermal continues to gain momentum thanks to not-yet-expiring tax incentives, innovation, and maturing tech. For HVACR contractors, the next wave of geothermal growth hinges on training and design expertise.