Latest Developments from GeoExchange

By Ryan Dougherty, President GeoExchange

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Dear Geo Outlook Reader,

I’m typing this update on a plane headed, yet again, to Washington, D.C. The U.S. election occurred less than a month ago and GeoExchange is already laying the groundwork for a very busy 2025. Former President Trump is again President, now back in the White House for a second term. He has vowed to repeal what he has called the “green new scam,” otherwise known as the Inflation Reduction Act and Infrastructure Investment and Jobs Act.

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Ryan Dougherty

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It was revealed recently that one of his first targets will be electric vehicle tax credits, but other provisions of the law are certainly on the chopping block. Relevant to our interests, the IRC Sec. 25D residential tax credits and Sec. 48 commercial investment tax credits could face efforts to reverse or modify their provisions. The focus on IRA/IIJA incentives is happening in the run-up to what is being called “The Tax Super Bowl.” Major tax cuts are expiring in 2025, and the congressional leadership will be looking for offsets and “pay fors” to make tax cut extensions revenue neutral. All of this is quite ominous, but there is hope for continued federal support for geothermal heating and cooling systems.

The fact is that many congressional Republicans like the IRA/IIJA generally and the geothermal provisions specifically. The world’s most efficient HVAC technology delivers so many benefits that Republicans and Democrats alike support it. Unlike other renewable industries, we haven’t historically had equal tax treatment or the runway to scale. We are just getting going as the building decarbonization movement takes hold across the globe.

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Presidents come and go, but building decarb is here to stay. There’s just a better way to heat and cool without burning fossil fuels. We know it, now we need everyone to know it, especially our elected officials. In an effort to drive awareness among key stakeholder groups, GeoExchange is thrilled at the recent launch of Mission Geo, an initiative to take geothermal heating and cooling to the next level by engaging with many of the decision-makers when it comes to buildings and HVAC systems. Visit missiongeo.org to learn more and stay tuned for lots of exciting updates in 2025!

Ryan Dougherty
President, GeoExchange
ryan@geoexchange.org