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

You know that clean-operating, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been eying but couldn’t afford? Well, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was previously a financial impossibility may now be well within your means, whether for a new home you’re building in Southern Ohio or for the enhancement of your present home. You’ll need to act soon, though, because the federal tax credit amount has been set up to shrink from year to 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. In 2020, then, just 26% of the total 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. That said, your system is part of a newly built or newly renovated home, it’s regarded as “placed in service” the moment you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy stored 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 connects your geothermal system to your home.
  • There are no set limits to the credit amount.

Need more specifics? WaterFurnace® has assembled them for you in this nifty flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Southern Ohio geothermal pros at Daniel's HVAC, LLC will be glad to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!