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

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

Here are the central facts:

  • A full 30% of the final cost of your geothermal system is covered by this credit through 2019. Starting in 2020, then, just 26% of the ultimate cost is covered. And in 2021, only 22%.
  • The federal geothermal tax credit can be applied retroactively to installations that are “placed in service” as of January 1, 2017, or beyond. A geothermal heating and cooling installation is typically regarded as having been “placed in service” when it’s fully installed and ready for use. If, however, your system is part of a newly built or newly renovated home, it’s considered “placed in service” the moment you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy accumulated in the earth for heating and cooling and, b) fulfills all ENERGY STAR requirements at the time of installation.
  • Covered expenditures encompass labor for onsite preparation, assembly, or original system installation and for the piping or wiring that connects your geothermal system to your home.
  • The credit amount is not limited.

Want more facts? Your Central geothermal pros at Fairfield Heating & Cooling will be pleased to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!