After years of advocacy to reinstate the tax credits for both residential and commercial installation of geothermal heat pumps, a five-year extension of the tax credit through 2021 was included in the budget deal that passed on February 9. Other renewable technologies, like fuel cells and small wind, also received extensions.
The reinstated tax credits are retroactive to January 1, 2017. The language also changes an important consideration for commercial geothermal heat pump projects, making them eligible if commenced by January 1, 2022, rather than placed in service.
The win is a victory for NGWA volunteers who came to Washington year after year to highlight the importance of promoting geothermal heat pumps and ensuring there was a level playing field with solar and wind.
Reinstating the tax credits will provide market opportunities for those who install geothermal heat pump systems.