Tax credit will help boost economy and support renewable energy initiatives.
The National Ground Water Association (NGWA) applauded the extension of the geothermal heat pump (GHP) installation tax credit included in the recently passed COVID-19 relief bill, according to a press release.
The bill, the Consolidated Appropriations Bill, 2021, includes language which extends the Energy Efficiency Property Tax Credit (residential credit) for GHPs for two years at its current level of 26% of total installation cost. In 2023, the credit steps down to 22% and then expires in 2024. The Investment Tax Credit (commercial credit) maintains its current level of 10% through 2023.
The tax credits were established to provide home and business owners with an incentive to install renewable and efficient energy technologies in their homes and businesses. NGWA, which represents geothermal heat pump manufacturers, suppliers, and installers, was an instrumental part of the tax credit’s creation in 2008 and its reinstatement in 2018. Geothermal technology was briefly excluded from the 2016 extension of the credit due to the 2008 recession and housing market crisis.
“These tax credits will go a long way towards maintaining jobs during the COVID-19 pandemic and keeping the economy strong throughout our recovery,” said NGWA Government Affairs Chairman Brian Snelten, PG in the press release. “With the additional benefits these tax credits offer to home and business owners and the environment, we are thrilled lawmakers saw this as an opportunity to do something that will help the entire country.”
To arrange an interview or request additional comments, please contact Ben Frech at [email protected], or call (614) 898-7791, ext. 1570.