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

You know that clean-running, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been longing for 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, be it for a new home you’re building in Medina or for the updating of your present home. You’ll need to act soon, though, because the federal tax credit amount has been set up to drop from year to year through 2021.

Here are the important facts:

  • A full 30% of the total cost of your geothermal system is covered by this credit through 2019. 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. “Placed in service” indicates that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. If, however, your system is part of a just built or just renovated home, it’s considered “placed in service” when you start living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy cached in the ground for heating and cooling and, b) satisfies all ENERGY STAR requirements at the time of installation.
  • Covered expenditures encompass labor for onsite preparation, assembly, or original system installation and for the piping or wiring that your geothermal system to your home.
  • There are no set limits to the credit amount.

Like more specifics? WaterFurnace® has gathered them for you in this handy flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Medina geothermal pros at Sisler Heating & Cooling, Inc. will be glad to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!