How Legislation Could Affect our Plans

It probably seems odd for me to be looking to Congress to help determine some of our plans for the house, but it all comes down to one technology.

Geothermal heating and cooling.

You see, geothermal– which is an incredibly efficient and green method of heating and cooling– currently benefits from some very nice tax credits.  However, those credits are set to expire at the end of 2016, and we won’t have even broken ground by then much less have the system installed to be able to qualify.  If we could take advantage of those credits– which amount to 30% of the cost– then the added expense of geothermal over a conventional HVAC system would be significantly decreased.

I think the energy savings of using a geothermal system might still justify the upfront cost, but with that tax credit, it seems to be a no-brainer.  Unfortunately, with just over a month left in 2016, the window of opportunity for Congress to extend the credits is closing quickly.

People in the geothermal industry have, as would be expected, seen significant jump in business because of the credits, and are saying that it is arbitrary and unfair that other green technologies like solar and wind did receive extensions of their respective tax credits while geothermal was left out.  They continue to lobby, but who knows what is going on behind closed doors that will ultimately dictate what happens.

geothermal-tax-credits-expiration

In the meantime, we will wait and see.

 

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