Energy-Savers Rejoice:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-running, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been longing for but couldn’t afford? Well, check again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was heretofore a financial impossibility may now be well within reach, whether for a new home you’re building in or for the improvement of your present home. You’ll want to act fast, though, because the federal tax credit amount has been set up to decrease from year to year through 2021.

Here are the critical facts:

  • A full 30% of the ultimate cost of your geothermal system is covered by this credit through 2019. In 2020, then, just 26% of the total cost is covered. And in 2021, just 22%.
  • The federal geothermal tax credit can be applied retroactively to installations that are “placed in service” as of January 1, 2017, or later. “Placed in service” means that the installation of your geothermal heating and cooling system is completely finished and the equipment is ready for use. But if your system is part of a recently built or renovated home, it’s considered “placed in service” at the time you start living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy accumulated in the earth for heating and cooling and, b) meets all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into account labor for onsite preparation, assembly, or original system installation and for the piping or wiring that secures your geothermal system to your home.
  • The credit amount is not limited.

Want more facts? WaterFurnace® has assembled them for you in this nifty flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your geothermal pros at Geothermal North will be happy to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!