Beckley Energy-Savers Take Note:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-operating, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been eying but couldn’t afford? Well, despair not! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was heretofore a financial impossibility may now be well within reach, be it for a new home you’re building in Beckley or for the improvement of your current home. You’ll have to act soon, though, because the federal tax credit amount has been set up to shrink from year to year through 2021.

Here are the pivotal facts:

  • A full 30% of the final 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 thereafter. A geothermal heating and cooling installation is typically figured 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 regarded as “placed in service” the moment you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy cached underground for heating and cooling and, b) meets 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.

Like more details? WaterFurnace® has assembled them for you in this nifty circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Beckley geothermal pros at Appalachian Heating 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!