The Loophole for Clean Heat
The OBBBA killed tax credits for heat pumps, but kept them for commercially leased geothermal and thermal storage systems.
President Donald Trump's megalaw will soon end tax credits for homeowners who want to install heat pumps or make other energy-efficiency improvements.
However, there's still a way to access federal assistance for cleaner heating. The law allows installers of geothermal heat pumps and thermal storage systems to earn tax credits.
- Companies can retain ownership of the systems and lease them to customers at a cost that reflects the federal discount of 30% to 50%.
- Some companies are adapting to the new state of play by pivoting to take advantage of the incentives.
Already, some companies are adapting to the new state of play.
Author's summary: Tax credits for clean heat are still available through leasing.