ESCO | Walker Blue

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

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

The Pitfalls of Success-Based Fees in Energy Tax Incentives (179D & 45L)

August 14, 2025April 14, 2025 by Elspeth Curtis

By David Diaz, Managing Partner at Walker Reid Strategies Let’s talk about something that’s been bothering me in the energy tax incentive space: success-based fees. If you’re a building owner, tax professional, or a designer/ESCO working on tax-exempt buildings, you need to hear this. Success-based fees in the §179D deduction process are, in my opinion, … Read more

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