Action Alert: Iowa Propane Gas Association Opposes Tax Credits for Geothermal Energy Systems

Des Moines, IA (March 14, 2017) — The Iowa Propane Gas Association (IPGA) opposes the following legislation introduced recently by the Iowa House and Senate: SF 386, SF 387, HF 122 and HF 123. This legislation would provide tax credits for installing geothermal energy systems. Proposed Senate and House files create tax credits equal to 10% of the expenditures made by a taxpayer for qualified geothermal energy system properties. By creating these tax incentives, the legislature would skew the marketplace to favor geothermal systems at the expense of other fuels, including propane. The IPGA believes the legislature should not pick winners and losers.

The IPGA is requesting that propane industry members contact the Senate Ways and Means committee to request a NO vote on SF 386 and SF 387.

The Association also encourages letters be sent to the House Ways and Means Committee to request a NO vote on HF 122 and HF 123.

Of the many home heating options available to Iowans, geothermal systems are the most expensive to purchase and install. For a functioning, competitive marketplace, all energy sources should be given equitable treatment in the tax code. Parity and consistency should be the goal of the legislature. Unfortunately, these bills miss that mark and would create an unfair business environment.

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