Chances of FED being reinstated

Looking to replace my WF (I know, day late and 30% short ) and am wondering if anyone has any thoughts or info on what chances are the federal credit would be reinstated. Thanks.

 

https://www.congress.gov/bill/115th-congress/house-bill/1090/cosponsors

It is in the House and Means Committee. It already has 59 cosponsors, more Republican than Democrats.
So it enjoys wide bi-partisan support.

 

Thank you, sir. At least there's a small amount of hope. The actual change to the bill seems to indicate it'd be retroactive in some way to Jan 1, 17.

 

95 cosponsors now (51Rep/41Dem)... when does it move on to the next step?

 

I could really use this credit to come back! I started my new home last year, but am just finishing now. I have a WF 7 Series just getting ready for commissioning, and that credit would be a welcome sight. I tried to contact Rep Reed to voice my support, but they say you have to live in one of his zip codes to get a message through. I sent a message to my Congressman here in PA, but he hasn't answered. I've not heard much from the industry on this year's lobbying plan. Are they trying to get this bill through stand alone? Part of a spending package? Part of larger tax reform? Surely they can piggyback it on something else. As long as it's there by 12/31 it's fine with me, but I'm starting to worry a bit. I really thought it was a no-brainer to level the playing field and extend it with the others that were already extended.

 

108 co-sponsors... but no way to know what the status is in Ways and Means... is it being discussed? What is time frame for any update?

The way the bill is written, it would make the credit retroactive to 1/1/17, by just modifying the END date in the original law. Does anyone know if that means, if it drags into 2018 before passed, that systems installed in 2017 would still be eligible? And if so, would it be done on 2018 taxes or require an amended 2017 return?

 

How does the potential tax reform bill(s) help/hurt geothermal credit chances? Is there any possibility that either the House or Senate Bill makes it in as an amendment or rider? If not there, is it essentially dead? I'm keeping my fingers crossed as I purchased a system, starting process last year when credit existed, but not finished until this year's limbo situation. I know my reasons for wanting it are self serving, but I've also read it's put a giant hurt on the industry, so lots of jobs are at stake too. Trump seems sensitive to middle class job loss, maybe the lobbyists need to hit on that topic?

 

Bump on this

I am also curious to know if installing a system before this bill is officially passed will qualify. New construction going up in 2018. If it doesn't pass I wonder if I should install a low cost standard forced air system before buying a GSHP.

 

May be this helps...but maybe a low cost standard forced air system is a better choice for you....

"Geo Tax Credits in Tax Reform Bill
GEO is pleased to announce that the extension of the residential and commercial tax credits for geothermal heat pumps is contained in the tax bill just released by the U.S. House of Representatives. This is a huge victory for the geothermal heat pump industry, its customers and contractors.
The strong coordinated campaign led by GEO for the past two years has resulted in Kevin Brady (R-TX), Chairman of the House Ways and Means Committee, and Paul Ryan (R-WI), Speaker of the House, agreeing with our position that Congress picked winners and losers when tax credits for solar and wind were extended in December of 2015. Since that time, GEO has worked tirelessly to fix this tax inequity.
Today marks a significant step toward achieving our goal of tax parity for geothermal heat pumps. But please remember this is not yet law. No business decisions or marketing efforts should be made in reference to this action today by Congress.
The language contained in the tax bill released today mirrors the language found in
H.R. 1090. It would extend the residential and commercial tax credits until January 1, 2022. The residential income tax credit would be retroactive back to January 1, 2017 at 30% and continue at that level until 2020 when it would drop to 26% and then at 22% for 2021 and end December 31, 2021. The 10% commercial investment tax credit would be extended until January 1, 2022 and change the language for placed in service to “property the construction of which begins before January 1, 2022.”
The tax bill also provides for 100% expensing for capital expenditures until the end of 2022, which is another benefit for our industry.
Again, today’s release of the tax bill with GEO’s language in it is a tremendous victory for the geothermal heat pump industry. Thanks to all who helped us to accomplish this step forward toward our goal. There is much more work to be done, and in the coming days we will be working hard to push tax parity for geothermal heat pumps over the finish line.
Best regards,
Doug Dougherty, President & CEO
GEO - The Geothermal Exchange Organization"

 

Thanks for the update Doc! This was one of the first things I dug for in the bill, considering I already bought a system and had it installed this year. Now, just have to get the bill passed. That's a big deal to me, as the system is paid for already, but a 30% tax credit would be a really, really welcome addition to help offset the extra money I had to put into it upfront. Thanks to the GEO folks, I know they lobbied hard to get that into the bill. Fingers crossed for it to make it through.

 

If the GOP tax bill passes geothermal and solar qualifies for 30% through the end of 2027.

(i) TERMINATION OF SOLAR ENERGY PROPERTY.—
6 Section 48(a)(3)(A)(i) is amended by inserting ‘‘, the con7
struction of which begins before January 1, 2028, and’’
8 after ‘‘equipment’’.
9 (j) TERMINATION OF GEOTHERMAL ENERGY PROP10
ERTY.—Section 48(a)(3)(A)(iii) is amended by inserting
11 ‘‘, the construction of which begins before January 1,
12 2028, and’’ after ‘‘equipment’’.

 

I quoted the wrong section. Here is the change to geothermal heating and cooling. The above is not for residential.

(f) EXTENSION OF THERMAL ENERGY PROPERTY.—
19 Section 48(a)(3)(A)(vii) is amended by striking ‘‘periods
20 ending before January 1, 2017’’ and inserting ‘‘property
21 the construction of which begins before January 1, 2022’’.

OLD Language:
"equipment which uses the ground or ground water as a thermal energy source to heat a structure or as a thermal energy sink to cool a structure, but only with respect to
periods ending before January 1, 2017
"
NEW Language if passed:
"equipment which uses the ground or ground water as a thermal energy source to heat a structure or as a thermal energy sink to cool a structure, but only with respect to
property the construction of which begins before January 1, 2022"

 

I have to buy a system and have it installed next month. So, I'll have to pay the full price now but I'll get a 30% tax credit if the bill gets passed. Am I right? I just hope that the bill gets passed as a 30% credit will help me a lot.

 

I can't tell for sure, and I haven't been able to find any definitive articles about it, but I think the Senate version of the tax bill does NOT correct the exclusion of the geothermal credits. I believe it keeps the current language untouched. Hopefully I am wrong and it also corrects it like the House version does above.

However, if that is the case, then it is very important that this gets included in the reconciliation of the two by pushing the House portion, not chopped out during reconciliation by favoring the Senate version, at least for that section of the bill.

Can someone on here confirm? Hopefully people high up the food chain are in the ears of the important players to get that to stay in the final bill.

 

You are correct. It is in the house bill but not in the Senate bill.

 

Does anyone know what happened to this in the tax reform bill? I tried Googling it, but there is nothing that confirms anything. An AP article says "Clean energy: Leaves in place tax credits for producing electricity from wind, biomass, geothermal, solar, municipal waste and hydropower." That doesn't make sense, since the geothermal part was not in place...?

Thanks for any help.

 

It is not in the current tax bill just passed by the Senate and the House.

But...

A bill titled "Tax Extender Act of 2017" was introduced into the Senate today. This bill, if passed, would provide a two-year extension of EPAct 179D December 31, 2018, allowing the incentive to be available retroactively for buildings placed in service in 2017, as well as in 2018.

It is likely that this would not be voted on until sometime in early to mid January.

 

Looks to me that residential geothermal was cut in the version that was passed by senate and house. Unfortunate. As docjenser stated it is up to the tax estender act. Fingers crossed it passes.

 

Thanks for the info! Whether or not this "Tax Extender" passes will likely determine if I will consider a Geo for my new build or not. That 8K-10K in tax refund is a lot of money...

 

It is a lot of money and I did get the 30% rebate however I am saving about $2,000 per year so I would do it again even without the rebate if I had too.