Historically having a high tax rate on manufacturing relative to the rest of the world, the 2017 tax reforms temporarily stimulated the U.S. manufacturing sector.
The bill significantly reduces the cost of a geothermal installation, spurs job creation, and hopes to inspire more contractors to tap into the geothermal market.
The Chicago area is one of the markets seeing an increased interest in geothermal systems from businesses and institutions like schools and governments.
As heat pump technology advances and begins its march into colder climates, industry experts are expecting rooftop units to continue to gain popularity in both new construction and retrofits.
With the geothermal market enjoying an enormous surge in popularity due to financial incentives and its reputation for sustainability, now is the time for contractors to strike while the iron is hot and add geothermal to their offerings.
There are numerous factors for this trend, including energy efficiency, government incentives, and technology improvement. But HVAC contractors are still the boots on the ground in this electrification mission.
While the installation of heat pumps may seem to be slowing due to inflation and rising interest rates, coupled with a confusing rollout of federal funding, they are expected to pick up speed this year.
Rebate programs associated with the Inflation Reduction Act for the purchase of high-efficiency HVAC equipment are finally picking up steam, after a near year and a half since the IRA was signed into law.