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

You know that smooth-running, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been wanting but couldn’t afford? Well, you’re in luck! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was previously unaffordable may now be well within reach, whether for a new home you’re building in Rochester or for the updating of your present home. You’ll need to act right away, though, because the federal tax credit amount has been set up to shrink from year to year through 2021.

Here are the salient facts:

  • A full 30% of the total 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 later. A geothermal heating and cooling installation is usually regarded as having been “placed in service” when it’s totally installed and ready for use. If, however, your system is part of a new or newly renovated home, it’s deemed to be “placed in service” the moment you start living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy stored underground 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 your geothermal system to your home.
  • The credit amount is unlimited.

Want more facts? WaterFurnace® has assembled them for you in this nifty circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Rochester geothermal pros at Earth Energy Heating & Cooling Inc. 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!