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Subcommittee hears bill to create 25% state tax credit for residential geothermal systems
Summary
House Bill 248 would create a 25% state income tax credit (up to $5,000 per year, claimed over five years) for residential geothermal heat-pump systems; proponents said the systems lower energy costs and peak electricity demand. The measure received a first hearing; no cap on program aggregate was set.
House Bill 248, carried by Chairman Jaspers, received a first hearing in the Income Tax Subcommittee. The bill would create a state income tax credit equal to 25% of installation expenses for residential geothermal heat-pump systems, claimable over five years and capped at $5,000 per taxable year per household. The credit would sunset after five years under the bill’s language.
Sponsor testimony described geothermal systems as residential heating-and-cooling systems that use the earth’s relatively steady ground temperature (about 64 degrees in Georgia) and well drilling and HVAC trades to install closed-loop heat exchangers. "It can save up to 70 percent on heating, cooling, and hot water," the sponsor said while outlining the bill’s intent to reduce household energy bills and lower peak electrical demand.
Committee discussion: Members asked about an overall program cap and implementation details. Witnesses representing HVAC contractors and related trades supported the bill and said the credit could spur local employment among drillers, plumbers and HVAC technicians. The sponsor indicated openness to adding an aggregate program cap if the committee wanted it; no such cap was inserted at the first hearing.
Outcome: First hearing only; no committee vote. Sponsors said they will return with additional details on program administration and potential fiscal exposure.
Ending note: The bill is positioned as part of broader energy policy conversations about demand reduction, but legislative staff will need to clarify the interaction with local utility incentives and the five-year sunset if the bill advances.
