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

You know that clean-functioning, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been wanting but couldn’t afford? Well, despair not! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was once a financial impossibility may now be well within reach, whether for a new home you’re building in Charleston or for the upgrading of your present home. You’ll need to act right away, though, because the federal tax credit amount has been set up to shrink each year through 2021.

Here are the principle facts:

  • A full 30% of the total 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 beyond. A geothermal heating and cooling installation is generally figured to be “placed in service” when it’s fully 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 take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy stored underground for heating and cooling and, b) satisfies all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into consideration labor for onsite preparation, assembly, or original system installation and for the piping or wiring that hitches your geothermal system to your home.
  • The credit amount is not limited.

Like more details? WaterFurnace® has assembled them for you in this handy circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Charleston geothermal pros at Custom Climate Heating & Air will be more than happy to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!