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

You know that clean-operating, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been wishing for but couldn’t afford? Well, look again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was once a financial impossibility may now be well within your means, be it for a new home you’re building in Greene County or for the updating of your existing home. You’ll want to act swiftly, though, because the federal tax credit amount is scheduled to decrease each year through 2021.

Here are the critical 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, 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. “Placed in service” indicates that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. That said, your system is part of a just built or just renovated home, it’s considered to be “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 accumulated underground for heating and cooling and, b) meets all ENERGY STAR requirements at the time of installation.
  • Covered expenditures include 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.

Like more specifics? WaterFurnace® has gathered them for you in this handy circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Greene County geothermal pros at Kool-Temp Heating & Cooling Inc. 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!