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

You know that clean-operating, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been longing for but couldn’t afford? Well, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was once unaffordable may now be well within reach, be it for a new home you’re building in or for the enhancement of your current home. You’ll need to act soon, though, because the federal tax credit amount has been set up to shrink each year through 2021.

Here are the principle facts:

  • A full 30% of the final 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 thereafter. “Placed in service” means that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. But if your system is part of a newly built or newly renovated home, it’s regarded as “placed in service” the moment you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy cached underground for heating and cooling and, b) fulfills 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 links your geothermal system to your home.
  • The credit amount is unlimited.

Want more details? WaterFurnace® has collected them for you in this brief but comprehensive leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your geothermal pros at Ground Loop Heating & Air Conditioning, Inc will be pleased to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!