West Branch Energy-Savers Take Note:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-running, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been longing for 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 once a financial impossibility may now be well within reach, be it for a new home you’re building in West Branch or for the upgrading of your present home. You’ll need to act swiftly, though, because the federal tax credit amount is slated to drop each 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. Beginning 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 beyond. A geothermal heating and cooling installation is normally considered to be “placed in service” when it’s completely installed and ready for use. But if your system is part of a just built or just renovated home, it’s considered “placed in service” when you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy stored in the ground for heating and cooling and, b) fulfills 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 links your geothermal system to your home.
  • There is no limit to the credit amount.

Need 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 West Branch geothermal pros at Nicholson Heating & Cooling 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!