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

You know that smooth-functioning, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been longing for but couldn’t afford? Well, you’re in luck! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was heretofore unattainable may now be well within your grasp, be it for a new home you’re building in Bloomington or for the updating of your existing home. You’ll want to act quickly, though, because the federal tax credit amount has been set up to drop each year through 2021.

Here are the important facts:

  • A full 30% of the final 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 later. “Placed in service” indicates that the installation of your geothermal heating and cooling system is complete and the equipment is ready for use. But if your system is part of a just built or just renovated home, it’s deemed to be “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 stored underground for heating and cooling and, b) fulfills 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.
  • The credit amount is not limited.

Want more specifics? WaterFurnace® has collected them for you in this handy leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Bloomington geothermal pros at Quality HVAC 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!