The US Senate’s proposal to cancel a key tax incentive for ground source heat pumps could devastate the industry, which provides highly efficient heating and cooling systems. The tax credits, which offset 30% of the project’s costs, are set to phase out by 2034, but the Senate’s draft bill would eliminate them in just 180 days. Industry executives argue that ground source heat pumps could help reduce energy demands, boost American manufacturing, and stabilize the electric grid as AI-fueled power demands increase. The systems, used in only 1% of US homes, are two to four times more efficient than air source heat pumps but cost twice as much to install. Manufacturers are lobbying to preserve the tax credits, warning that eliminating them could lead to massive layoffs and undermine the industry’s growth. The industry employs over 2,000 people in the US and supports thousands of additional jobs in system design, drilling, and installation.
Producers of Ground Source Heat Pumps Appeal to Senators to Safeguard Geothermal Tax Incentives
