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

You know that smooth-operating, low-maintenance, amazingly 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 back again! And what was heretofore unaffordable may now be well within your means, whether for a new home you’re building in West Chester or for the upgrading of your present home. You’ll need to act soon, though, because the federal tax credit amount has been set up to drop each year through 2021.

Here are the salient facts:

  • A full 30% of the final cost of your geothermal system is covered by this credit through 2019. Beginning in 2020, then, just 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 later. A geothermal heating and cooling installation is typically regarded as having been “placed in service” when it’s totally installed and ready for use. That said, your system is part of a new or newly renovated home, it’s deemed to be “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) 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 connects your geothermal system to your home.
  • There are no set limits to the credit amount.

Want more specifics? WaterFurnace® has assembled them for you in this handy leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your West Chester geothermal pros at Sinton Air Conditioning & Heating, Inc. will be more than happy to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!