Geothermal Tax Credit

Geothermal ITC for ESCOs: Who Claims the Credit and How It Affects Performance Contracts

September 10, 2026September 10, 2026 by Julian Martinez

Diagram showing how ownership determines who may claim or monetize the geothermal ITC in an ESCO performance contract.

David Diaz, Chief Strategy Officer · Technical review: John Kapral, Senior Director, Renewable Energy Tax Incentives & Credits · Updated September 2026 At a Glance Question Short answer Primary credit Section 48 Potential rate 30% with applicable requirements; potentially up to 50% with qualifying adders Customer-owned public project Elective pay may be available under §6417 … Read more

The geothermal tax credit in 2026 and who can still claim it

August 30, 2026August 28, 2026 by Julian Martinez

2026 tax credit for a geothermal energy project showing drilling equipment and ground-loop installation at a commercial building.

One geothermal credit went to zero in 2025. The one that heats and cools buildings still runs through 2034 construction starts. By Josh Howes, CEO, Walker Blue Technical review by John Kapral, JD, CPA, LLM, Senior Director of Renewable Energy Tax Incentives and Credits Bottom line. Commercial geothermal heat pump projects may qualify for a … Read more

Case Study: How a $937,000 Geothermal Project Produced a $289,000 Federal Tax Credit

August 30, 2026August 20, 2026 by Julian Martinez

Henry County Board of Education | New Castle, Kentucky By David Diaz, CSO, Walker Blue LLC The Henry County Board of Education installed a 22.7 kW geothermal water-source heat pump system at a total project cost of $937,030. Walker Blue substantiated $851,157 as ITC-eligible basis and supported a federal Investment Tax Credit of approximately $289,000, … Read more

Can District and Campus Geothermal Projects Qualify for the Federal ITC?

August 30, 2026June 15, 2026 by Julian Martinez

Campus geothermal energy system showing underground heat exchange loops serving multiple educational buildings, illustrating how district and campus geothermal projects can support sustainability goals and potentially qualify for federal clean energy tax incentives.

Yes, geothermal systems serving district energy networks, campuses, and central plants may qualify for the federal Investment Tax Credit, and the runway is longer than most owners assume. While solar and wind face compressed construction-start timing under the One Big Beautiful Bill Act (P.L. 119-21, enacted July 4, 2025), geothermal heat pump property retained eligibility … Read more

Geothermal ITC for ESCOs: Who Claims the Credit and How It Affects Performance Contracts

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