Geothermal Energy Use Getting Boost From New York State Tax Credit
ALBANY, N.Y. — New Yorkers seeking to improve their carbon footprint by incorporating more renewable energy into their lives just got a helping hand from state lawmakers who have approved a tax credit for any geothermal energy system installed after Jan. 1, 2022.
Under the terms of the tax credit bill sponsored by state Sen. Tim Kennedy, D-N.Y., and General Assembly Member Jon Rivera homeowners can carry the credit forward for five years if their New York income tax liability is less than $5,000.
Simply defined, geothermal energy technologies take advantage of the fact heat is continuously produced beneath the earth’s crust. The closer it is to the surface, the more it is relied on for bathing, heating homes and businesses, and generating electricity.
While several western states have adopted geothermal as part of their overall energy palette, including California, Nevada, Oregon, Idaho, Utah and New Mexico, the U.S. Energy Information Administration reports its use is sporadic elsewhere in the United States.
In New York State, for instance, highly efficient geothermal heating and cooling has been available to consumers for decades, but it remains underutilized due, in part, to the upfront costs of such systems.
“Using a geothermal heat pump is a climate-friendly, energy-efficient option available to heat and cool your home, and this tax credit will make transitioning to them more affordable for New York homeowners,” said state Sen. Todd Kaminsky, D-N.Y., chair of the New York State Senate’s Environmental Conservation Committee in a written statement.
“Reducing the cost will encourage local, green job growth while helping New York achieve its climate objectives,” he said.
Doreen Harris, president and CEO of the New York State Energy Research and Development Authority said, “Under Gov. Hochul, New York is committed to pursuing ambitious and urgently needed climate and building decarbonization priorities, and has set a nation-leading goal of 2 million electrified and efficient homes statewide by 2030.
“These new tax incentives approved in this year’s budget make geothermal more affordable, helping New Yorkers to heat and cool their homes without burning fossil fuel,” Harris said.
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