Lafayette Energy-Savers Rejoice:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-running, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, you’re in luck! 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 your means, be it for a new home you’re building in Lafayette or for the improvement of your existing home. You’ll have to act soon, though, because the federal tax credit amount has been set up to drop from year to 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. Beginning 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 later. A geothermal heating and cooling installation is usually considered to be “placed in service” when it’s completely installed and ready for use. That said, your system is part of a just built or just renovated home, it’s considered to be “placed in service” at the time you start 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 encompass labor for onsite preparation, assembly, or original system installation and for the piping or wiring that links your geothermal system to your home.
  • The credit amount is not limited.

Want more specifics? WaterFurnace® has assembled them for you in this nifty bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Lafayette geothermal pros at Korschot's Heating and Air will be happy to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!