Central Ohio Energy-Savers Rejoice:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-operating, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been dreaming about 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 reach, whether for a new home you’re building in Central Ohio or for the upgrading of your existing home. You’ll want to act fast, though, because the federal tax credit amount is slated to decrease 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, 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 considered to be “placed in service” when it’s completely installed and ready for use. If, however, your system is part of a recently built or renovated home, it’s deemed to be “placed in service” when you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy accumulated underground for heating and cooling and, b) satisfies all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into account labor for onsite preparation, assembly, or original system installation and for the piping or wiring that hitches your geothermal system to your home.
  • There is no limit to the credit amount.

Like more specifics? WaterFurnace® has assembled them for you in this useful flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Central Ohio geothermal pros at Westin 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!