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

You know that smooth-running, low-maintenance, amazingly 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 back again! And what was heretofore unattainable may now be well within your grasp, be it for a new home you’re building in Defiance or for the updating of your existing home. You’ll need to act swiftly, though, because the federal tax credit amount is scheduled to shrink each year through 2021.

Here are the important facts:

  • A full 30% of the ultimate cost of your geothermal system is covered by this credit through 2019. In 2020, then, just 26% of the total 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 done and the equipment is ready for use. But if your system is part of a just built or just renovated home, it’s regarded as “placed in service” the moment you start living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy cached underground for heating and cooling and, b) satisfies 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 tethers your geothermal system to your home.
  • The credit amount is unlimited.

Need 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 Defiance geothermal pros at Schlatters Plumbing Heating & AC 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!