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

You know that clean-functioning, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was previously unaffordable may now be well within your means, whether for a new home you’re building in Rochester or for the updating of your existing home. You’ll want to act right away, though, because the federal tax credit amount is scheduled to decrease from year to year through 2021.

Here are the central 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, 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. 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 recently built or renovated home, it’s deemed to be “placed in service” the moment you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy cached underground 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 secures your geothermal system to your home.
  • There is no limit to the credit amount.

Need more details? WaterFurnace® has gathered them for you in this handy data sheet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Rochester geothermal pros at Van Hee Mechanical 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!