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State Senators, Geothermal Installers and Advocates Call on Governor Cuomo to Sign Tax Credit Bill to Support Geothermal Industry & Jobs in the State
Renee Vogelsang, New Yorkers for Clean Power
October 6, 2016
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Rochester, NY - State Senators joined geothermal installers, advocates, homeowners, business owners and environmental organizations today to call on Governor Andrew Cuomo to sign Geothermal Tax Credit Bill A9925/S6249. The bill gives a tax incentive of 25% up to $5,000 to homeowners to install geothermal, a renewable energy technology for heating and cooling buildings. It passed overwhelmingly in the New York State Senate and Assembly during the 2016 legislative session and is waiting for the Governor’s signature.
The bill comes at a dire time for the geothermal industry, which employs more than 1,000 people in the state and will be feeling the impacts from a 30% federal tax incentive that is set to expire at the end of this year. The solar industry has benefited from a similar state tax incentive that has made the renewable energy source more affordable and accessible to homeowners and businesses in the state.
Geothermal is critical to executing New York State’s recently adopted aggressive mandate to achieve greenhouse gas reduction goals of 40 percent by 2030, as well as the longer term target of reducing emissions 80 percent by 2050. The New York State Energy Plan states that 35% of New York’s climate damaging greenhouse gases come from on-site combustion, primarily to heat homes and buildings.
“Utilizing natural, renewable energy benefits all New Yorkers. This legislation is a common sense, bipartisan approach that will pay dividends across our region by reducing our carbon footprint for future generations and investing in and creating good local jobs. With geothermal solutions, we’re also helping to lower energy costs for hard-working families and small businesses,” said Senator Rob Ortt, 62nd District.
“I'm a big believer in a multi-pronged approach to energy, with geothermal generation a vital part of that equation. Due to its strong potential, geothermal energy should benefit from the same type of investments made in other renewable options, like solar. I'm proud to join local partners in calling on Governor Cuomo to support clean, renewable geothermal energy by signing this bill into law,” said Senator Rich Funke, 55th District.
“The bipartisan support, and passage, of this legislation is evidence that New Yorkers are interested in new, eco-friendly ways to heat and cool their homes and reduce their overall carbon footprint. This commonsense tax credit will provide more New Yorkers with the opportunity to utilize geothermal heating, the benefits of which are not only environmental, but also economical,” said, Senator Joe Robach, 56th District
“This bill is key to sustaining the geothermal industry’s momentum built over the last several years. Without it, the industry will begin to shed well-paying local jobs, essential skills, and invaluable experience as demand for geothermal installations and conversions subsides. All of us will scale back our geothermal operations; some of us will, no doubt, go out of business. We will be ill-prepared when (not if) the state eventually calls upon the geothermal industry to help enable significant reductions in greenhouse gasses and reliance on fossil fuels. Thousands of NYS homeowners will not be able to afford to convert to the clean, low-cost heating & cooling that geothermal offers and will continue to purchase fuels sourced outside the state,” said Steve Cooper, Lake Country Geothermal.
“Support for geothermal heat pumps is an absolutely essential component of any serious effort to avert catastrophic climate change. Everything we know about the path to major greenhouse gas reductions tells us that we must ‘electrify’ our heating sector through the conversion from fossil fuels to energy efficient heat pumps and then supply the energy for those heat pumps through renewable energy sources like wind and solar,” said Jessica Azulay, Program Director with Alliance for a Green Economy. “There is no other viable strategy for comprehensive greenhouse gas reductions in space heating. That is why we call on the Governor to ensure the geothermal industry survives and thrives in New York by signing the geothermal tax credit bill into law.”
“In 2016 alone, ACES-Energy will install over 100 geothermal units. With each geothermal unit installed, there is an entire supply chain of local labor such as engineers, equipment operators, electricians, ductwork fabricators, HVAC installers and support staff to name a few, in addition to the materials and supplies. Each one of these skilled trades brings dollars into the local economy and provides jobs to over 1,000 people in New York State,” said AJ Heiligman, ACES Energy.
“Geothermal heating and cooling is key to cutting fossil fuel use and helping New York State reach its greenhouse gas reduction goals. However, with the federal tax credits scheduled to end on January first, our industry is struggling with layoffs. Governor Cuomo - help us be ready to boost your administration's heating and cooling initiative by signing the NY Tax Credit into law and save 1,000 good paying New York jobs in the process,” said Bill Nowak, Executive Director at NY-GEO.
“The urgency of climate change demands that we provide incentives for people to switch to renewable resources as quickly as possible,” said, Peter Debes, with Rochester Sierra Club
“We at Dutton Properties chose geothermal heating and cooling over traditional methods for “The Factory Project” at 39 Russell because it has helped us to create a sustainable and environmentally conscious infrastructure for this redevelopment," said Luke Dutton, Property Owner of The Factory Project.
“Renewable energy technologies like geothermal for heating and cooling buildings are critical to reaching New York’s renewable energy and greenhouse gas emission goals. We applaud the New York State legislature for taking bold leadership in passing Bill A9925/S6249 for a geothermal tax credit similar to what is currently available for solar energy in the state. We call on Governor Cuomo to continue to lead the way in fighting climate change and supporting clean jobs by signing this bill into law,” said, Renee Vogelsang, Campaign Coordinator with New Yorkers for Clean Power.
More on Geothermal Heat Pumps - http://energy.gov/energysaver/geothermal-heat-pumps
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