Western North Carolina 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 wanting but couldn’t afford? Well, despair not! 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 reach, whether for a new home you’re building in Western North Carolina or for the enhancement of your present home. You’ll want to act soon, though, because the federal tax credit amount has been set up to decrease from year to year through 2021.

Here are the important 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 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 later. A geothermal heating and cooling installation is usually regarded as having been “placed in service” when it’s totally installed and ready for use. But if your system is part of a just built or just renovated home, it’s considered to be “placed in service” at the time you take up residence.
  • 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 include 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 gathered them for you in this useful data sheet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Western North Carolina geothermal pros at Bullman Heating & Air will be pleased to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!