Grinnell Energy-Savers Celebrate:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-running, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been longing for 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 a financial impossibility may now be well within reach, whether for a new home you’re building in Grinnell or for the improvement of your current home. You’ll want to act quickly, though, because the federal tax credit amount is scheduled to decrease 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. Starting in 2020, then, only 26% of the total 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. “Placed in service” means that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. If, however, your system is part of a new or newly renovated home, it’s regarded as “placed in service” the moment you start living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs 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 your geothermal system to your home.
  • The credit amount is unlimited.

Need more specifics? WaterFurnace® has gathered them for you in this handy bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Grinnell geothermal pros at Latcham Enterprises will be pleased to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!