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

You know that clean-functioning, 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 reinstated! And what was heretofore unattainable may now be well within reach, whether for a new home you’re building in Abilene or for the upgrading of your existing home. You’ll need to act fast, though, because the federal tax credit amount is slated to drop each year through 2021.

Here are the salient 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 later. A geothermal heating and cooling installation is generally regarded as having been “placed in service” when it’s totally installed and ready for use. If, however, your system is part of a new or newly renovated home, it’s considered “placed in service” at the time you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy accumulated in the ground 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.
  • There are no set limits to the credit amount.

Need more details? WaterFurnace® has assembled them for you in this handy leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Abilene geothermal pros at Southwest Air Conditioning will be pleased to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!