End of Federal Tax Credit Deals Setback to U.S. Residential Geothermal Market
- brg_news_room
- Feb 24
- 1 min read
USA: The removal of a federal tax incentive for residential geothermal projects has dealt a setback to the industry. However, stakeholders remain optimistic due to emerging approaches to address cost barriers and system ownership, along with growing opportunities in the commercial geothermal sector.
The Residential Clean Energy Credit, commonly referred to as the Section 25D credit , previously provided homeowners with a 30% tax credit for geothermal installations. Although the incentive was originally set to expire after 2034, the One Big Beautiful Bill Act accelerated its phase-out to the end of last year. Preliminary data from the Internal Revenue Service (IRS) indicates that at least 80,730 households claimed the credit for installing geothermal systems in 2023.
Source: ACHR News
