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

You know that smooth-functioning, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been wishing for 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 once unaffordable may now be well within reach, whether for a new home you’re building in Annapolis or for the upgrading of your existing home. You’ll need to act right away, though, because the federal tax credit amount has been set up to decrease 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. Starting in 2020, then, only 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 thereafter. “Placed in service” means 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 recently built or 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) makes use of solar energy accumulated underground for heating and cooling and, b) meets 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 not limited.

Need more facts? WaterFurnace® has collected them for you in this nifty bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Annapolis geothermal pros at Continental Services will be glad to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!