The Loophole for Clean Heat
The OBBBA has eliminated tax credits for heat pumps, but retained them for commercially leased geothermal and thermal storage systems, providing an alternative for clean home heating.
President Donald Trump's legislation will soon end tax credits for homeowners who want to install heat pumps or make energy-efficiency improvements. However, there is still a way to access federal assistance for cleaner heating.
- The law allows installers of geothermal heat pumps and thermal energy storage systems to earn tax credits.
- Companies that own these systems can lease them to customers at a reduced cost, reflecting the 30% to 50% federal discount.
Installers that didn’t previously have a leasing business are pivoting to take advantage of the incentives.
Some companies are adapting to the new rules, creating an opportunity for clean heat solutions.
Author's summary: Loophole helps clean heat under Trump.