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

You know that smooth-functioning, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been eying but couldn’t afford? Well, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was previously unaffordable may now be well within your means, whether for a new home you’re building in Terre Haute or for the updating of your current home. You’ll have to act fast, though, because the federal tax credit amount has been set up to drop 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, 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” means that the installation of your geothermal heating and cooling system is complete and the equipment is ready for use. If, however, your system is part of a newly built or newly renovated home, it’s deemed to be “placed in service” when 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 connects your geothermal system to your home.
  • The credit amount is unlimited.

Like more facts? WaterFurnace® has assembled them for you in this convenient data sheet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Terre Haute geothermal pros at Andrews Heating & Air Conditioning, Inc. will be glad to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!