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

You know that smooth-running, low-maintenance, incredibly 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 reinstated! And what was previously a financial impossibility may now be well within your means, be it for a new home you’re building in Traverse City or for the enhancement of your current home. You’ll need to act right away, though, because the federal tax credit amount has been set up to decrease each year through 2021.

Here are the important 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 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 figured to be “placed in service” when it’s completely installed and ready for use. But if your system is part of a newly built or newly renovated home, it’s considered to be “placed in service” at the time you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy cached in the earth for heating and cooling and, b) fulfills 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.

Like more details? WaterFurnace® has gathered them for you in this brief but comprehensive flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Traverse City geothermal pros at D&W Mechanical will be glad to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!