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

You know that smooth-functioning, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been longing for but couldn’t afford? Well, despair not! 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, whether for a new home you’re building in Chillicothe or for the upgrading of your current home. You’ll need to act fast, though, because the federal tax credit amount has been set up to shrink each year through 2021.

Here are the important 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, 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 just built or just 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) 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.
  • There are no set limits to the credit amount.

Need more details? WaterFurnace® has gathered them for you in this nifty flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Chillicothe geothermal pros at Combs Heating & Cooling will be pleased to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!