I 
110TH CONGRESS 
1ST SESSION H. R. 2990 
To amend the Internal Revenue Code of 1986 to make geothermal heat 
pump systems eligible for the energy credit and the residential energy 
efficient property credit. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 11, 2007 
Mr. DOGGETT (for himself and Mr. GORDON of Tennessee) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to make 
geothermal heat pump systems eligible for the energy 
credit and the residential energy efficient property credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ENERGY CREDIT FOR GEOTHERMAL HEAT 
PUMP SYSTEMS. 
(a) IN GENERAL.—Subparagraph (A) of section 
48(a)(3) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘or’’ at the end of clause (iii), by inserting 
‘‘or’’ at the end of clause (iv), and by adding at the end 
the following new clause: 
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‘‘(v) equipment which uses the ground 
or ground water as a thermal energy 
source to heat a structure or as a thermal 
energy sink to cool a structure,’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 2. RESIDENTIAL ENERGY EFFICIENT PROPERTY 
CREDIT FOR GEOTHERMAL HEAT PUMP SYS-
TEMS. 
(a) IN GENERAL.—Subsection (a) of section 25D of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘and’’ at the end of paragraph (2), by striking the period 
at the end of paragraph (3) and inserting ‘‘, and’’, and 
by adding at the end the following new paragraph: 
‘‘(4) 30 percent of the qualified geothermal 
heat pump property expenditures made by the tax-
payer during the taxable year.’’. 
(b) QUALIFIED GEOTHERMAL HEAT PUMP PROP-
ERTY EXPENDITURES.—Subsection (d) of section 25D of 
such Code is amended by adding at the end the following 
new paragraph: 
‘‘(4) QUALIFIED
GEOTHERMAL
HEAT
PUMP 
PROPERTY EXPENDITURES.— 
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‘‘(A) IN
GENERAL.—The term ‘qualified 
geothermal heat pump property expenditures’ 
means an expenditure for qualified geothermal 
heat pump property installed on or in connec-
tion with a dwelling unit located in the United 
States and used as a principal residence (within 
the meaning of section 121) by the taxpayer. 
‘‘(B) 
QUALIFIED
GEOTHERMAL
HEAT 
PUMP
PROPERTY.—The term ‘qualified geo-
thermal heat pump property’ means any equip-
ment which— 
‘‘(i) uses the ground or ground water 
as a thermal energy source to heat the 
dwelling unit referred to in subparagraph 
(A) or as a thermal energy sink to cool 
such dwelling unit, and 
‘‘(ii) meets the requirements of the 
Energy Star program which are in effect 
at the time that the expenditure for such 
equipment is made.’’. 
(c) MAXIMUM CREDIT LIMITATION.—Paragraph (1) 
of section 25D(b) of such Code is amended by striking 
‘‘and’’ at the end of subparagraph (B), by striking the 
period at the end of subparagraph (C) and inserting ‘‘, 
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and’’, and by adding at the end the following new subpara-
graph: 
‘‘(D) $2,000 with respect to any qualified 
geothermal heat pump property expenditures.’’. 
(d) COORDINATION WITH CREDIT
FOR NONBUSI-
NESS ENERGY PROPERTY.—Subsection (b) of section 25D 
of such Code is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(3) DENIAL OF DOUBLE BENEFIT FOR GEO-
THERMAL HEAT PUMPS.—The credit allowed under 
subsection (a) (determined without regard to this 
paragraph and subsection (c)) with respect to any 
qualified geothermal heat pump property expendi-
tures shall be reduced by the amount of any credit 
allowed under section 25C with respect to such ex-
penditures.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures made after the 
date of the enactment of this Act. 
Æ 
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