Roadrunner Capitol Reports
Legislation Detail

S 68 GEOTHERMAL HEAT PUMP TAX CREDITS

Sen William Soules

Actions: [1] SCC/STBTC/SFC-SCC [4]germane-STBTC API.

Scheduled: Not Scheduled

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Summary:
    Senate Bill 68 (SB 68) extends the Geothermal Ground-Coupled Heat Pump Tax Credits and makes the income tax credit refundable. SB 68 raises the aggregate cap of the credits to $16 million and requires annual reporting by the Taxation and Revenue Department. The definition of qualifying heat pump is modified. 
Legislation Overview:
    Senate Bill 68 (SB 68) extends the Geothermal Ground-Coupled Heat Pump Tax Credits. The heat pump must be purchased and installed between 2022 and 2032. The credit remains 30% of cost up to $9,000, and any amount of credit exceeding the taxpayer’s tax liability is refundable instead of being carried forward in succeeding tax years. SB 68 raises the annual aggregate total of credits from $2 million to $16 million for personal income tax filers and corporate filers. SB 68 clarifies the definition of heat pump to mean a refrigeration system that uses the ground or water to heat or cool.
   The Taxation and Revenue Department is charged with annual reporting to relevant interim legislative committees. SB 68 is applicable in Tax Years beginning 2022.
 
Status Quo:
    If SB 68 is not passed, qualifying systems must have been installed between 2010 and 2020. The credit is 30% of costs up to $9,000 and is not refundable but must be carried forward in succeeding tax years up to 10 years. Qualifying heat pumps are limited to reversible refrigerator devices that utilize ground water or water circulating through buried pipes as a condenser while cooling and as an evaporator while heating. 
Relates To:
 SB 68 is a duplicate of HB 35.