MOTHER’s Newsworthies: Tony Hall, John Gofman and Jim Channon

By The Mother Earth News Editors
Published on November 1, 1981
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PHOTO: MOTHER EARTH NEWS STAFF

Brief: Congressman Tony Hall 

The Energy Tax Act of 1978 scented like good news,
since it offered generous credits to individuals and
businesses using alternative energy installations to cut
down on their needs for nonrenewable fuel sources. However,
since that legislation was passed, its geothermal clause
has fallen prey to what Rep. Tony P. Hall (D-Ohio) calls an
“arbitrary” ruling of the Internal Revenue Service.

In addition to its solar and wind power provisions, you see,
the Energy Tax Act sought to encourage the use of
geothermal energy by granting a 407, tax credit on the cost
of “earth-powered” equipment to heat or cool residences, and
a 10 percent credit for commercial buildings (with a maximum
allowance of $4,000).

However, the IRS has ruled that — in order for an owner
to qualify for the tax credit — his or her geothermal
source must register a temperature of at least 122 degrees Fahrenheit.
That regulation, unfortunately, made most buildings in the
eastern half of the U.S. ineligible … since — in
that region — ground water of about 50 degrees provides
much of the available geothermal energy.

And that, says Rep. Hall, “is precisely the sort of petty
bureaucratic nonsense that we’re trying to eliminate from
the federal government.” Furthermore, maintains the Ohio
lawmaker, “The IRS temperature ruling … ignores the
tremendous energy-saving potential of lower-temperature
geothermal sources that are just as valuable as
other
forms of renewable energy.”

To thwart the tax bureau’s action, Hall and his colleague
Rep. Don Clauses (R-Calif.) have introduced bipartisan
legislation (House bill 4091) that would eliminate the
IRS’s ability to set a temperature requirement. At press
time, the Hall-Clauses bill was scheduled for
hearings before the House Ways and Means subcommittee of
Select Revenue Measures.

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