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

You know that smooth-functioning, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been dreaming about 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 heretofore unaffordable may now be well within reach, whether for a new home you’re building in Kearney or for the improvement of your present home. You’ll have to act right away, though, because the federal tax credit amount is scheduled to shrink 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 ultimate 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 beyond. “Placed in service” indicates 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 take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy accumulated in the earth 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.
  • There is no limit to the credit amount.

Want more specifics? WaterFurnace® has gathered them for you in this nifty circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Kearney geothermal pros at Axmann Heating & Air Conditioning 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!