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

You know that smooth-functioning, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was heretofore a financial impossibility may now be well within reach, be it for a new home you’re building in Columbia or for the enhancement of your present home. You’ll need to act soon, though, because the federal tax credit amount is scheduled to shrink each year through 2021.

Here are the principle 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 beyond. “Placed in service” means that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. But if your system is part of a recently built or renovated home, it’s regarded as “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 accumulated 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 your geothermal system to your home.
  • There is no limit to the credit amount.

Want more facts? WaterFurnace® has collected them for you in this brief but comprehensive flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Columbia geothermal pros at WaterFurnace 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!