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

You know that clean-running, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been longing for but couldn’t afford? Well, check again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was once a financial impossibility may now be well within your means, be it for a new home you’re building in Lancaster or for the improvement of your present home. You’ll have to act soon, though, because the federal tax credit amount is slated 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. In 2020, then, only 26% of the total 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 normally regarded as having been “placed in service” when it’s totally installed and ready for use. That said, your system is part of a newly built or newly renovated home, it’s considered “placed in service” at the time you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy cached underground 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 secures your geothermal system to your home.
  • The credit amount is not limited.

Want more specifics? WaterFurnace® has collected them for you in this handy circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Lancaster geothermal pros at Gochnauer at Home will be more than happy to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!