Greenville 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, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was previously a financial impossibility may now be well within your grasp, whether for a new home you’re building in Greenville or for the updating of your current home. You’ll have to act fast, though, because the federal tax credit amount is slated to decrease from year to 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. Beginning in 2020, then, only 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. “Placed in service” indicates that the installation of your geothermal heating and cooling system is completely finished and the equipment is ready for use. That said, your system is part of a new or newly renovated home, it’s considered to be “placed in service” at the time you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy stored underground for heating and cooling and, b) fulfills 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 secures your geothermal system to your home.
  • The credit amount is unlimited.

Like more details? WaterFurnace® has collected them for you in this brief but comprehensive leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Greenville geothermal pros at BARGA Heating, Air Conditioning & Refrigeration, Inc. will be happy to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!