1. Short title
This Act may be cited as the “Geothermal Energy Opportunity Act of 2019” or the “GEO Act of 2019”.
Geothermal Energy Opportunity Act of 2019
A BILL
To amend the Internal Revenue Code of 1986 to include geothermal energy in the 30 percent energy credit.
2. Inclusion of geothermal in 30 percent energy credit
In general— Section 48(a)(2)(A)(i)(II) of the Internal Revenue Code of 1986 are each amended by striking “paragraph (3)(A)(i)” and inserting “clause (i) or (iii) of paragraph (3)(A)”.
Phaseout— Section 48(a) of such Code is amended by adding at the end the following new paragraph:
“(8) Phaseout for geothermal
“(A) In general—Subject to subparagraph (B), in the case of any energy property described in paragraph (3)(A)(iii) the construction of which begins before January 1, 2027, the energy percentage determined under paragraph (2) shall be equal to—
“(i) in the case of any property the construction of which begins after December 31, 2024, and before January 1, 2026, 26 percent, and
“(ii) in the case of any property the construction of which begins after December 31, 2025, and before January 1, 2027, 22 percent.
“(B) Placed in service deadline—In the case of any energy property described in paragraph (3)(A)(iii) the construction of which begins before January 1, 2027, and which is not placed in service before January 1, 2029, the energy percentage determined under paragraph (2) shall be equal to 10 percent.”
Effective date— The amendments made by this section shall apply to periods after December 31, 2019, under rules similar to the rules of section 48(m) as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990.