Chairman Thompson, Ways and Means Democrats Unveil Growing Renewable Energy and Efficiency Now Act (News Release)
Today House Ways and Means Subcommittee on Select Revenue Measures Chairman Mike Thompson (CA-05) and Committee Democrats released a discussion draft of the Growing Renewable Energy and Efficiency Now (GREEN) Act.
This draft legislation is a comprehensive approach to tackling climate change by using the tax code to extend and expand renewable energy use and reduce greenhouse gas emissions.
You can click here to read the discussion draft of the GREEN Act and click here to view a section-by-section of the legislation.
You can click here to read the discussion draft of the GREEN Act and click here to view a section-by-section of the legislation.
Selections pertaining to geothermal from the section by section analysis of the discussion draft:
The production tax credit (PTC) for geothermal energy is revived and extended through the end of 2019. Separately, geothermal is made eligible for a higher investment tax credit under § 48 starting in 2020. See sec. 102 of the discussion draft.
The investment tax credit (ITC) for geothermal energy property is modified to match the credit timeline for solar energy property. Therefore, the ITC for geothermal energy property is 30% through the end of 2024. The ITC then phases down to 26% in 2025, 22% in 2026, and 10% thereafter. Geothermal will not be eligible for the PTC after 2019. See § 101 of this discussion draft.“The geothermal industry is helping build a future where geothermal power and heat can be rolled out across the nation as a critical source of renewable energy for U.S. households and businesses as we transition to a clean energy future.
The Geothermal Resources Council (GRC) can attest to the vital importance of tax credits to the success of geothermal energy business, and strongly supports and applauds the leadership shown by the House Ways and Means Subcommittee on Select Revenue Measures, and Chairman Mike Thompson, in drafting the Growing Renewable Energy and Efficiency Now (GREEN) Act.
The GREEN Act would retroactively extend the Production Tax Credit (PTC) through 2019 for geothermal, which otherwise expired at the end of 2017, and extends the Investment Tax Credit (ITC) at 30% for geothermal plants through the end of 2024. These tax credits provide a predictable market signal for project development, which in turn leverages private investment and promotes job creation and local economic benefits across the country.”
Will Pettitt, PhD, FGS
Executive Director, GRC
