Bill > S00642

This bill provides an exemption for the sale and installation of residential and commercial geothermal heat pump systems equipment from state and local sales tax. Geothermal heat pump systems use the ground or ground water as a thermal energy source or sink to provide heating, cooling, and/or hot water for buildings. The exemption applies to both the retail sale of the geothermal equipment and the service of installing the systems. The bill also gives counties and cities the option to elect to impose their own local sales tax on such geothermal equipment and installation, up to half the maximum local sales tax rate.