Maryville 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 dreaming about 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 previously a financial impossibility may now be well within your means, be it for a new home you’re building in Maryville or for the improvement of your current home. You’ll need to act swiftly, 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, only 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 later. A geothermal heating and cooling installation is generally considered to be “placed in service” when it’s completely installed and ready for use. That said, your system is part of a new or newly renovated home, it’s regarded as “placed in service” the moment you begin 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) satisfies all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into account labor for onsite preparation, assembly, or original system installation and for the piping or wiring that secures your geothermal system to your home.
  • The credit amount is unlimited.

Need more details? WaterFurnace® has collected them for you in this useful leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Maryville geothermal pros at A&L Heating and Air, LLC will be pleased to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!