Mountain Home Energy-Savers Take Note:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-operating, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been wanting but couldn’t afford? Well, check again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was once a financial impossibility may now be well within your means, be it for a new home you’re building in Mountain Home or for the improvement of your present home. You’ll want to act fast, though, because the federal tax credit amount is slated to decrease from year to 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. 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. A geothermal heating and cooling installation is usually figured to be “placed in service” when it’s fully installed and ready for use. That said, your system is part of a just built or just 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) makes use of solar energy stored underground for heating and cooling and, b) meets 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 links your geothermal system to your home.
  • The credit amount is unlimited.

Need more facts? WaterFurnace® has collected them for you in this brief but comprehensive flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Mountain Home geothermal pros at Custom Heating & Cooling Inc. will be happy to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!