Chances of FED being reinstated

Discussion in 'Tax Credits, Rebates and Incentives' started by Kone, Apr 25, 2017.

  1. Kone

    Kone New Member

    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.
     
  2. docjenser

    docjenser Well-Known Member Industry Professional Forum Leader

    Deuce and Kone like this.
  3. Kone

    Kone New Member

    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.
     
  4. Curtman333

    Curtman333 New Member

    95 cosponsors now (51Rep/41Dem)... when does it move on to the next step?
     
  5. reb214

    reb214 New Member

    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.
     
  6. ggenv

    ggenv New Member

    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?
     
  7. reb214

    reb214 New Member

    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?
     
  8. Douglas Nathe

    Douglas Nathe New Member

    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.
     
  9. docjenser

    docjenser Well-Known Member Industry Professional Forum Leader

    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"
     
  10. reb214

    reb214 New Member

    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.
     
  11. Douglas Nathe

    Douglas Nathe New Member

    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’’.
     
  12. Douglas Nathe

    Douglas Nathe New Member

    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"
     

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