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

You know that clean-operating, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been wishing for but couldn’t afford? Well, you’re in luck! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was heretofore unaffordable may now be well within reach, be it for a new home you’re building in Dexter or for the updating of your present home. You’ll want to act quickly, though, because the federal tax credit amount is scheduled to drop each year through 2021.

Here are the pivotal 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, 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. “Placed in service” means that the installation of your geothermal heating and cooling system is complete and the equipment is ready for use. That said, your system is part of a recently built or 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 ground 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 hitches your geothermal system to your home.
  • The credit amount is unlimited.

Want more specifics? WaterFurnace® has gathered them for you in this convenient leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Dexter geothermal pros at Haley Mechanical will be glad to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!