House lawmakers are pressuring the Treasury Department to make sure tax credit guidance doesn’t hamper the build-out of geothermal heat pump systems that have the potential to slash energy costs and cut carbon emissions in buildings across the country.
On Tuesday, Rep. Sean Casten (D-Ill.) led close to a dozen House Democrats and one Republican in a letter urging Treasury Secretary Janet Yellen to adjust proposed tax guidance to ensure multiple owners of a geothermal heat pump system, or GHP, can access the Inflation Reduction Act’s Section 48 incentive.
The 2022 climate law provides a 30 percent tax credit through 2032 for GHPs that are certified through Energy Star, a program administered by EPA and the Department of Energy that promotes energy efficiency.
But such advanced heating systems are both complex and expensive, which has resulted in multiple consumers owning different parts of a GHP to develop an entire system, especially in large commercial buildings.
