USA, Nevada: Legislation Would Expand Investment Tax Credit for Geothermal to Full 30% Rate for 5 Years

Cortez Masto, Rosen Introduce Bill to Boost Investments in Nevada’s Booming Solar and Geothermal Industries (News Release)

Senator Catherine Cortez Masto (D-Nev.) and Jacky Rosen (D-Nev.) introduced legislation to encourage the growth of Nevada’s renewable energy projects by extending and expanding renewable energy credits. The Solar and Geothermal Tax Credit Expansion Act would extend the Investment Tax Credit (ITC) and residential renewable energy tax credit, as well as create tax parity for geothermal and other renewable energy technologies. The bill will support groundbreaking renewable energy projects and fuel deployment, jobs, innovation and carbon reduction.

“Geothermal energy is emerging as the critical renewable resource that enables more solar, wind, and other renewable resources to be developed while eliminating greenhouse gas emissions cost-effectively,” said Paul Thomsen, Vice President of Ormat Technologies and Chairman of the Geothermal Resources Council Policy Committee. “We commend Senator Rosen’s and Senator Cortez Masto’s call for an extension of the ITC available to geothermal which recognizes its value and will provide the market signals that will unleash project development throughout the renewable sector.”

The Solar and Geothermal Tax Credit Expansion Act encourages the deployment, growth and innovation of these growing technologies by:

• Fully reinstating the maximum credit with a 5-year extension of the Investment Tax Credit (ITC) for solar energy property, fiber optic solar, fuel cells and small wind, retroactively delaying the incremental phase out that began in 2020.
• Extending the credit for geothermal heat pumps, microturbines and combined heat and power systems for an additional 5 years from their current expiration date of January 1, 2022 and enhancing the credit to the full 30% rate.
• Expanding the ITC for geothermal to the full 30% rate for 5 years, providing for equal tax treatment to other renewable technologies like solar.

Full text of the bill is available here.

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