Articles Tagged with ''tax credits''

Riviera Beach, Florida – The buzz surrounding RGF Environmental Group, Inc.’s (RGF) recent invitation and visit to the White House caught the attention of Florida Governor, Rick Scott.

Following a contentious two-year struggle, the HVACR industry is enthusiastically applauding Congress’ decision to reinstate the federal residential and commercial geothermal heat pump tax credits.

WaterFurnace Intl. Inc. is poised for an exciting year as the manufacturer is preparing to release several new commercial HVAC products, including a modular chiller and rooftop unit as well as a variable-speed, 10- to 15-ton Versatec geothermal heat pump.

After two years of strenuous, grassroots efforts, it appears as if geothermal tax credits are making a comeback.

It’s not unusual for one to wake up with a headache on Jan. 1, but the headache that greeted the geothermal industry on Jan. 1, 2017, wasn’t caused by excessive late-night celebration. On that date, geothermal systems lost their 10 percent investment tax credit under Section 48 of the Internal Revenue Code (which covers energy tax credits).

On Dec. 31, 2016, the 30 percent residential and 10 percent commercial federal tax credits for geothermal heat pumps expired while credits for solar and wind were extended.

HR 1090 — The Technologies for Energy Security Act of 2017 — introduced by Rep. Tom Reed, R-N.Y., would correct a congressional oversight in late-2015 that extended tax credits for solar and wind but left behind “orphaned” technologies, like geothermal heat pumps, fuel cells, microturbines, small wind, and combined heat and power (CHP) when their credits expired Jan. 1 of this year. The Reed bill currently boasts 108 cosponsors, 59 of which are Republicans.

In the last decade, solar has experienced an average annual growth rate of 68 percent. This has been spurred, in part, because the cost to install solar has dropped by more than 70 percent since 2010, which has led the industry to expand into new markets and deploy thousands of systems nationwide.

Since the tax credits went into effect in 2008, many contractors have experienced a significant boost in their geothermal businesses. And, now that the geothermal tax credits have lapsed, contractors and manufacturers are prepared to continue forward without them.

Geothermal credits are being reintroduced in the form of the Reed Bill, legislation introduced by Tom Reed, R-N.Y., Mike Thompson, D-Calif., and 18 additional cosponsors (12 Republicans and six Democrats).