Geothermal Buyers Benefit Big from the Inflation Reduction Act of 2022

The Senate recently passed the sprawling Inflation Reduction Act of 2022 with over $370 Billion for energy and climate programs. Included are some valuable tax credits for Geothermal customers!

Residential Geothermal Tax Credit:

  • Increases credit to 30% through 2032
  • Reduces to 26% in 2033
  • Reduces to 22% in 2034
  • 0% in 2035
  • Credit takes effect immediately and is retroactive to Jan 1, 2022

Commercial Geothermal Tax Credit:

  • 30% credit for 10 years through 2032
  • Direct IRS payment for tax-exempt entities, and state, local, and tribal governments
  • Additional 10% credit for products that are substantively made in the United States
  • Section 179D deduction increased from $1.80 to $5.00/ft2 for building owners or for designers of tax-exempt projects

To read more about the bill and how it helps Geothermal customers, click here or read the full bill here. If you’d like to learn more about adding geothermal to your home or business, let’s talk!