• This tax credit is retroactive. Homeowners who bought a geothermal heating, cooling, and hot water system from January 1, 2017 till now qualify for the 30% credit.
• The tax credit will be at 30% until December 31, 2019. In 2020 the tax credit will begin to phase out, dropping to 26%, and in 2021 it lowers to 22 percent. The tax credit will expire on December 31, 2021.
PRESS RELEASE February 9, 2017
Geothermal Heat Pump Tax Credits Reinstated
Hard-Fought Victory Will Secure Jobs and Time to Help Overcome Market Barriers
Feb. 9, 2017 (Springfield, IL) Today the U.S. geothermal heat pump (GHP) industry scored a
victory for its workforce and their employers as federal legislation was passed to extend federal
tax credits for residential and commercial installations of GHPs. The measure was included in
the Continuing Resolution spending bill approved by Congress.
The reinstated GHP tax credits are retroactive to Jan. 1, 2017, and extended to Jan. 1, 2022. The
language also changes an important consideration for commercial GHP projects, making them
eligible if commenced by Jan. 1, 2022 rather than placed in service.
“Today’s action by Congress finally fixes the inequity created two years ago when tax credits for
solar installations were extended through 2021,” stated Geothermal Exchange Organization
(GEO) President and CEO Doug Dougherty, “Credits for technologies including GHPs, fuels cells,
microturbines, small wind and combined heat and power were left to expire at the end of 2016.
Since then it was an uphill fight, as GEO and its allies worked diligently for parity with the solar
industry through bills in both the House and Senate. GEO’s message to legislators was
ultimately heard: Congress shouldn’t be picking winners and losers when it comes to renewable
energy and fairness in tax policy. “And now we have finally achieved parity with solar,” said
Coalition partners included all of the “orphaned” clean energy technologies, and among others,
the National Rural Electric Cooperative Association, the National Association of Homebuilders,
and the Air Conditioning Contractors of America. In the days prior to passage, GEO joined a
larger coalition of business, energy, transportation, real estate, and agriculture stakeholders
who gathered forces to make their case for including tax extenders in the CR that passed the
Senate and the House.
GEO’s relentless campaign to regain GHP tax credits included several Executive Fly-Ins to
Washington DC in 2017, plus GEO Board Members, staff and industry volunteers making
hundreds of visits to House and Senate legislative offices. Grassroots efforts by GEO members
and supporters included job site visits set up for key legislators to show them firsthand the
value of GHPs and plead the industry’s case for tax credit parity with solar.
“Achieving this critical milestone for our industry couldn’t have been accomplished without the
positive and aggressive leadership of GEO staff, GEO manufacturers and members, our DC
lobbying team—and the tireless efforts of my fellow board members during several Fly Ins to
Washington during the past two years,” said GEO Board Chairman Joe Parsons (EarthLinked
“Our hard-fought victory for the GHP industry helps ensure a bright future for our technology,”
said Dougherty. “It will stem the loss of jobs we now face, provide more time to overcome
market barriers, achieve economies of scale, and help spread the environmental and economic
benefits of GHPs across America.”
GEO—the Geothermal Exchange Organization—is a non-profit 501(c)(6) trade association
representing the interests of all businesses involved in the geothermal heat pump industry
across the United States. GEO provides outreach to the industry, public and government about
the economic, national security, and environmental benefits of geothermal heat pump systems
for residential, institutional and commercial applications.
For more information, visit
www.geoexchange.org. Phone: (888) 255-4436.