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

You know that smooth-running, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been longing for but couldn’t afford? Well, you’re in luck! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was previously unattainable may now be well within reach, whether for a new home you’re building in Newton or for the enhancement of your present home. You’ll need to act right away, though, because the federal tax credit amount is scheduled to drop 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. In 2020, then, just 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 later. A geothermal heating and cooling installation is typically regarded as having been “placed in service” when it’s fully installed and ready for use. That said, your system is part of a just built or just renovated home, it’s regarded as “placed in service” the moment you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy stored in the ground 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.
  • There are no set limits to the credit amount.

Need more specifics? WaterFurnace® has gathered them for you in this brief but comprehensive bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Newton geothermal pros at Perfection Contracting, Inc. will be more than happy to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!