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

You know that smooth-operating, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, despair not! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was heretofore 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 need to act quickly, though, because the federal tax credit amount has been set up to decrease from year to year through 2021.

Here are the important 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 beyond. “Placed in service” indicates that the installation of your geothermal heating and cooling system is complete and the equipment is ready for use. If, however, your system is part of a newly built or newly renovated home, it’s regarded as “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 stored in the ground 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.
  • There are no set limits to the credit amount.

Like more facts? WaterFurnace® has collected them for you in this convenient circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Central geothermal pros at Fairfield Heating & Cooling will be pleased to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!