An update on the current and future tax credits in the GeoThermal industry.
On August 16 of this year, the president of the United States signed the Inflation Reduction Act into law. That means a change in the tax credits available to both the residential and commercial markets.
I’m pleased to announce that tax credits for GeoThermal heat pumps went from 26% to 30% this year. Also, they’ll go through 2032 without change in the residential sector. Moreover, the tax credit will drop to 26% in 2023 and then to 22% in 2024 on the commercial side. This is all good news for the GeoThermal industry—it truly helps offset the cost of the equipment itself. On the commercial side, tax credits went from 10% to 30% in 2022, so I suggest speaking with your CPA about this.