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

You know that clean-operating, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, despair not! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was previously a financial impossibility may now be well within your means, whether for a new home you’re building in Port Washington or for the improvement of your existing home. You’ll need to act soon, though, because the federal tax credit amount is scheduled to shrink each year through 2021.

Here are the crucial facts:

  • A full 30% of the total cost of your geothermal system is covered by this credit through 2019. Beginning in 2020, then, just 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” means that the installation of your geothermal heating and cooling system is completely finished and the equipment is ready for use. That said, your system is part of a just built or just renovated home, it’s deemed to be “placed in service” at the time you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy cached in the earth for heating and cooling and, b) satisfies 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 hitches your geothermal system to your home.
  • There is no limit to the credit amount.

Want more facts? WaterFurnace® has assembled them for you in this brief but comprehensive bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Port Washington geothermal pros at Professional Geothermal Systems will be more than happy to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!