Mobile Energy-Savers Celebrate:
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, check again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was once unattainable may now be well within reach, whether for a new home you’re building in Mobile or for the updating of your current home. You’ll have to act quickly, though, because the federal tax credit amount is scheduled to decrease each year through 2021.

Here are the salient facts:

  • A full 30% of the total 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, 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. That said, your system is part of a recently built or renovated home, it’s deemed to be “placed in service” when you begin living in the home.
  • 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 links your geothermal system to your home.
  • The credit amount is unlimited.

Need more specifics? WaterFurnace® has gathered them for you in this brief but comprehensive bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Mobile geothermal pros at Geothermal Solutions will be happy to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!