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

You know that smooth-running, low-maintenance, wonderfully 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 reinstated! And what was once unaffordable may now be well within reach, whether for a new home you’re building in Williamsport or for the upgrading of your existing home. You’ll need to act right away, though, because the federal tax credit amount is scheduled to decrease each year through 2021.

Here are the important facts:

  • A full 30% of the final cost of your geothermal system is covered by this credit through 2019. Beginning in 2020, then, only 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 beyond. A geothermal heating and cooling installation is normally considered to be “placed in service” when it’s completely installed and ready for use. That said, your system is part of a recently built or 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 stored underground for heating and cooling and, b) fulfills 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 secures your geothermal system to your home.
  • There is no limit to the credit amount.

Need more details? WaterFurnace® has assembled them for you in this convenient bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Williamsport geothermal pros at Hepler Geothermal Inc. will be happy to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!