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

You know that smooth-operating, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been wanting but couldn’t afford? Well, look again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was once a financial impossibility may now be well within your means, whether for a new home you’re building in Mitchell or for the improvement of your present home. You’ll have to act right away, though, because the federal tax credit amount has been set up to decrease 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, just 26% of the ultimate 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 fully installed and ready for use. That said, your system is part of a recently built or 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) employs solar energy accumulated underground for heating and cooling and, b) satisfies 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 secures your geothermal system to your home.
  • There is no limit to the credit amount.

Like more details? WaterFurnace® has gathered them for you in this useful data sheet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Mitchell geothermal pros at Affordable Geothermal LLC will be more than happy to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!