Revival and extension of U.S. production tax credits for geothermal facilities lauded
Ormat Technologies commends U.S. legislators for the extension of the geothermal tax credits. This continued support for the geothermal industry creates jobs and contributes to U.S. energy independence.
Ormat Technologies, Inc. (NYSE: ORA) commended passage of the United States federal appropriations bill that retroactively revived and extended the full Production Tax Credit (PTC) for geothermal facilities. The PTC provides a credit for each kilowatt-hour of energy produced by the taxpayer from qualified renewable energy facilities. The PTC for geothermal facilities that expired at the end of 2017 was retroactively revived and extended through 2020, continuing U.S. support for the geothermal industry. This support contributes to the ongoing creation of new jobs in the geothermal industry as well as the nation’s energy independence.
On December 17, 2019, the United States House of Representatives passed the tax extenders package, allowing geothermal projects that begin construction before the end of 2020 to claim PTCs when the project is later placed in service, or to elect to receive in lieu of such PTCs, an Investment Tax Credit (ITC). On December 19, 2019, the United States Senate passed this bill and it was signed into law by President Donald Trump on December 20, 2019.
“Geothermal energy remains a key element of our country’s energy portfolio, enabling higher renewable penetration and greenhouse gas reductions,” said Isaac Angel, Ormat’s Chief Executive Officer. “We commend the extension of the PTC available for geothermal, which helps level the playing field with other technologies and provides predictable market signals for project development. This, in turn, helps leverage private investment to create new Jobs and drive economic benefits across the country.”
A copy of the law can be found at the following link: https://www.congress.gov/bill/116th-congress/house-bill/1865
Source: Ormat release