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

You know that clean-functioning, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been wanting but couldn’t afford? Well, you’re in luck! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was once a financial impossibility may now be well within reach, whether for a new home you’re building in Ord or for the improvement of your current home. You’ll need to act fast, though, because the federal tax credit amount is slated to shrink from year to 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. Beginning in 2020, then, only 26% of the total 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. A geothermal heating and cooling installation is typically considered to be “placed in service” when it’s totally installed and ready for use. If, however, your system is part of a new or newly 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) makes use of solar energy cached underground for heating and cooling and, b) satisfies all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into consideration labor for onsite preparation, assembly, or original system installation and for the piping or wiring that secures your geothermal system to your home.
  • The credit amount is unlimited.

Want more facts? WaterFurnace® has collected them for you in this handy leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Ord geothermal pros at Wadas Inc. 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!