An Act advancing renewable heating solutions for the Commonwealth

HD 2087 establishes a Renewable Heating Solutions Development Fund managed by the Department of Energy Resources, using alternative compliance payments to support renewable heating projects. It creates three new tax credits: a 30% refundable credit for businesses producing qualified renewable heating fuels, a 30% credit for purchasing/installing renewable heating equipment (like heat pumps), and a 30% credit for geothermal district heating infrastructure. These credits directly affect businesses in the renewable heating sector and property owners installing qualifying systems. The fund and credits aim to increase renewable thermal resource supply and reduce carbon intensity from end-use heating fuels, with money flowing directly to eligible projects without annual appropriation limits.