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

You know that smooth-operating, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been wishing for but couldn’t afford? Well, despair not! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was heretofore unattainable may now be well within your grasp, be it for a new home you’re building in Southeast Missouri or for the improvement of your current home. You’ll have to act right away, though, because the federal tax credit amount is scheduled to decrease each year through 2021.

Here are the important facts:

  • A full 30% of the final 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. “Placed in service” indicates that the installation of your geothermal heating and cooling system is completely finished and the equipment is ready for use. If, however, your system is part of a recently built or 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) employs solar energy stored in the ground for heating and cooling and, b) meets all ENERGY STAR requirements at the time of installation.
  • Covered expenditures include labor for onsite preparation, assembly, or original system installation and for the piping or wiring that connects your geothermal system to your home.
  • There is no limit to the credit amount.

Like more details? WaterFurnace® has collected them for you in this useful data sheet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Southeast Missouri geothermal pros at Lundy HTG. & CLG. will be happy to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!