A bill introduced in the U.S. Senate would amend an existing tax credit to bring geothermal power on par with other renewable energy sources.
The Geothermal Energy Investment Act of 2010, introduced by Ron Wyden (D-Ore.) and Mike Crapo (R-Idaho), aims increase investment in
geothermal power facilities and technologies and give producers the
ability to compete with other renewable energy resources, like solar, on
an equitable basis.
Many renewable energy technologies have been provided Federal tax
credits to offset start up costs. The investment tax credit for
geothermal power investment is lower than other renewables making it
more costly to develop the technology and conduct the exploration needed
to make it competitive.
To date, the U.S. has underutilized the high
geothermal capacity available, due in part to the high initial cost of
the technology and the risk involved in locating and developing
geothermal sources.
The Geothermal Energy Investment Act of 2010 would
raise the federal tax credit on geothermal energy investments through
calendar year 2016 from 10% to the 30% currently available
for solar and fuel cell technology investments to give producers the
lead time needed to develop technology and explore geothermal locations.
An identical companion bill has been introduced in the House of Representatives by Rep. Earl Blumenauer (D-Ore.).
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