You know that clean-running, low-maintenance, wonderfully 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 back again! And what was heretofore unaffordable may now be well within your grasp, be it for a new home you’re building in Idaho Falls or for the improvement of your current home. You’ll have to act right away, though, because the federal tax credit amount is scheduled to shrink each year through 2021.
Here are the salient facts:
- A full 30% of the ultimate cost of your geothermal system is covered by this credit through 2019. Starting in 2020, then, only 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. A geothermal heating and cooling installation is generally considered to be “placed in service” when it’s totally installed and ready for use. That said, your system is part of a newly built or newly 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) makes use of solar energy stored in the earth for heating and cooling and, b) satisfies all ENERGY STAR requirements at the time of installation.
- Covered expenditures take into consideration labor for onsite preparation, assembly, or original system installation and for the piping or wiring that hitches your geothermal system to your home.
- There are no set limits to the credit amount.
- This credit can be merged with other tax credits and incentives also, including those for solar, wind, and energy-efficiency upgrades.
Want more facts? WaterFurnace® has gathered them for you in this useful flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Idaho Falls geothermal pros at Conan Heating & Air Conditioning will be happy to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!
