The US heat pump market is set to enjoy a continued boost following the extension of the investment tax credit (ITC) by a further five years to 2021. While the ITC is only 10% for commercial building compared to 30% for solar PV it is an important incentive for building owners as it allows the first cost of these hugely efficient systems to be reduced to a level where paybacks are financially attractive. The ITC can be structured into large scale funding solutions allowing corporates and financial investors to work together to create economically viable sustainable solutions.
The New Energy for America Act, H.R. 2412, was introduced on May 19, 2015, and allows investment tax credits (ITC) to be received for new installations of geothermal and other energy efficient technology of 30% and 10% in residential and commercial property respectively until at least 2021.
The act, which was announced by U.S Representative Mike Thompson, extends the previous Act that was due to close in 2016. He explained that ‘the ITC is one of the most important tools we have that supports the deployment’ of clean energy solutions in the United States.
The original act was introduced in 2008 and has been crucial to driving the sustainable energy economy. Now, in a growing economy and expanding residential and commercial industry, the ITC’s will be available to do what they were designed to do in 2008, boost sales and promote sustainable energy solutions for a cleaner future.
(Photo credit: Sustainable Design, California Academy of Science, Built with Tax Credits)